November 26th, 2012 at 4:16PM
asker

freemarketliberal asked: Prices are sticky. Wages are sticky. Moms are sticky. Everything's sticky.

I agree and that’s why Quantity Theory of Money fails, at least in the short term. Prices react to money supply but that reaction time varies and isn’t (always) instantaneous, this is why monetary inflation and price inflation can exist individually and aren’t economic singularity like rknjl says they are. 

  1. freemarketliberal said: Yeah, it’s neither the monetarists perception of a tight joint nor the keynesian perception of a broken joint.
  2. sugashane posted this
2 notes #ask#Economics#Sticky Prices#Quantity Theory of Money
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