The preservation of the scale property of money, namely the preservation of its purchasing power. – It is undisputed that monetary stability is a public good. For – not only the flawless success of the economic process (the continuously interlocking and intermeshed activities of production and consumption conditioned by the fact of human repetitive needs) depends on stable money. Also – social cohesion is severely disrupted by a decline in purchasing power, because any inflation gives birth to winners, namely persons who enjoy advantages as a result of the deterioration in the value of money, such as owners of assets, of goods and, above all, debtors, on the one hand, and losers, namely persons who are harmed by the loss of the purchasing power of money, such as, above all, fixed income earners, pensioners and creditors, on the other. – See bond, inflation-protected, money value adjustment costs, inflation compensation, money, moral, money property law, money ethics, money neutrality, long-term, money value, money purpose, hyperinflation, mortgage profit levy, inflation tax, capital protection, constancy criterion, lie-and-deceive thesis, market mechanism, menu costs, nominal value principle, price adjustment costs, price stability, commodity hoarding.
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/