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What, You Mean It Works?; entered at 2012-06-07 01:34:32

Burya_rubenstein
Posts: 942
Registered: 2007-08-08

Finally, in a deflationary economy, wages as well as prices often have to fall – and
it’s a fact of life that it’s very hard to cut nominal wages

It is perfectly okay for wages to drop so long as prices drop faster. The important thing about a pile of money is how much stuff it can buy.

2012-06-07 01:34:32


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