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!!!!!!!!!!!!!!!!!!!!!!!!
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