Less Than Zero: The Case for a Falling Price Level in a Growing Economy (Iea Hobart Paper, No 132)

This book sets out to explain the complexity of why increased production does not that always bring with it lower prices. According to the book, those who look upon monetary expansion as a way to eradicate almost all unemployment fail to appreciate that persistent unemployment is a non-monetary or 'natural' economic condition, which no mount of monetary medicine can cure. Selgin explores the differences between these monetary and natural conditions, and proposes solutions of his own. Title page 2 Contents 4 Foreword 6 I. Introduction 10 II. Productivity and Relative Prices 22 III. Debtors and Creditors 42 IV. Historical Implications of the Productivity Norm 50 V. The Productivity Norm in Practice 65 VI. Conclusion 71 Appendix 73 References 75 George Selgin. Includes Bibliographic References (p. 74-81)