Currency Wars (mises.org)
- Highlight Loc. 89-91 | Added on Wednesday, February 08, 2012, 11:36 AM
In Mises's stage one, government prints all the money it can, because prices don't rise nearly as much as money supply. In stage two, the demand for money falls, which intensifies price inflation. Finally, in stage three, prices go up faster than money supply. A shortage of money develops, and people urge government to print more; when the government does this, prices and money supply spiral upwards.
