Monday, July 26, 2010

Kapitalism





Kapitalism comes with an in-built self-correcting mechanism, may be not that self-correcting, or, may be correcting, but, at a cost. Consciously or un-consciously, it produces trade-cycles. Individuals may not realize it, but, it’s a possibility, that some school of thought may realize that "Kapitalism comes at a cost, and sometimes it exploits."

You know, trade-cycles are nothing but a condition of prices. Sometimes inflated and sometimes deflated, and in prosperity they are just prices. And, employment/unemployment comes as a by-product. As long as, we will rely on nominal to deal with the real variable, we will be the loop called trade-cycles.

Can anybody tell me how inflation and deflation are possible in Barter-Economy?

The situation is, price of 1 unit of same good of a company equals the price of 1 unit of good of other company, or, say both products (same but produced by different companies, just to be clear) can fetch you 4 units of a good. The only assumption being that there are no qualitative differences in same goods.


Let us be full of hope!!!!!!!!!!!!!!!!!!!!!!!!

No comments:

Post a Comment

"TRY TO CARVE OUT A DEAL, YOUR PURPOSE, AND NOT TERROR, LOWER TARIFFS WOULD INCREASE TRADE AND INCOMES..... GLOBALLY..."

      INDIA's now is the biggest as per the human resources and is rival to China and part of China plus 1 policy and more open and a de...