1. Ludwig von Mises
Mises agreed with the classical "quantity theory- that an increase in the supply of dollars will lead to a fall in its value or "price."" ... If there is an increase in the supply of money it will tend to lower its value, but how much or if at all, depends on what happens to the marginal utility of money and the demand of the public to keep its money in cash balances. Mises showed that the "quantity of money- does not increase in a lump sum. The increase begins at one point in the economic system and prices will only rise as the new money spreads in ripples throughout the economy. An increa...
- Word Count: 2749
- Approx Pages: 11
- Grade Level: Undergraduate