A Rehabilitation of Say’s Law (W. H. Hutt)
- Highlight Loc. 1072-77 | Added on Sunday, March 25, 2012, 07:09 PM
The “monetarists” think in terms of an “adequate” money supply which can at any rate assist in maintaining the continuity of the market-clearing process while pure “Keynesians” say that it is an “adequate” rate of spending that matters. But the crucial continuity is always dependent upon valuing and pricing, whether or not monetary policy is flexible, rigid, inflationary or deflationary—i.e., independently of the factors which determine the purchasing power of the money unit. Certainly some monetary policies facilitate the process—at a cost—while others make it more difficult.
