The Free Market Center

The Free Market Center

Inflation—Deflation
Fixed Money Supply - Wheat Production Decreases

Wheat Production Decreases

Shoe Production Fixed 0.00%/Month
Wheat Production Decreases -1.50%/Month
Money Supply Fixed 0.00%/Month

In this example the production of wheat declines.

Inflation-Deflation

Sales decline. Dollar prices increase. As expected.

Direct Exchange

Inflation-Deflation

Wheat and shoe direct exchange prices move in opposite directions as expected.

Let's sum up changes in a fixed money supply environment on the next page.

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& James B. Berger. All rights reserved.
To contact Jim Berger, e-mail:

© 2010—2020 The Free Market Center & James B. Berger. All rights reserved.
To contact Jim Berger, e-mail: