Procrustean Art of Backtracking: “Money Supply Fixed”
Opening a text book on Principles of Economics, one of the first things we come across is “Supply.” Fact one, the supply is at the marginal cost of production. Fact two, the value of cost is accounted for in the sovereign currency unit . Fact three, the supply schedule of the product exists with no regard to the Demand and a price. The price would be the opportunity “benefit” per unit in compensation for all the money and time spent for the supply. It’s more or less “weird” that no economist has ever referred to opportunity benefit , the mirror image of opportunity “cost.” Again, the article “the” means the single highest value of all opportunities forgone. Such a narrative as the opportunity cost of “liquidity preference” is the interest rate is fatally misleading. To most everyone other than a macroeconomist, the opportunity ...