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

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