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In the beginning can seem that action of this plan would create threat of the serious
Inflationary expansion. But on closer examination it appears that it
The effect could not be inflationary in a little serious sense. What
It supposed expansion of inflow of money, it hardly would lead to the general
To rise in price or to that deficiency of consumer goods, in which form
The most fatal consequences of inflation prove. Actually one of
The greatest dignities of the offered scheme that it supplies is
Automatic delay of any expansion before that can become dangerous.
We have considered at first its action in a phase of contraction, because it
Efficiency in boom depends on previous accumulation
Stock of goods which would occur during easing the business
Activity. The mechanism of action of this scheme when is not less important also
Improvement of the general prospects conducts to mobilisation of reserves not used
The aggregate exercise price of the primary goods which have made monetary unit, could not
To be lifted, while the monetary authorities would be capable to sell them from the stocks
At the established price. Instead of a rise in price and the subsequent increase in volume
Return to the circulation of the accumulated stocks of money, primary goods
Would be released from warehouses and the money received for them would be withdrawn. Savings,
Made individuals in the form of cash in recession, would not be spent
For nothing, but would wait for the hour in the form of the primary goods ready to
To the use. As a result activity revival would not lead to the overwork
To stimulation of production of such goods - it would began to be carried out
In regular intervals. There are bases to consider as one of the most serious reasons of the general
Instability those time stimulus to excessive expansion of production
Primary goods which are ordinary given by a sharp jump in prices on them in
The boom periods. It could be avoided completely at the offered scheme -
At least until with the monetary authorities would remain any
Stocks for sale. But as they necessarily would have sufficient reserves
For retirement of all redundant cash, accumulated during the period
Recession (and even considerably big if to include here stock of goods,
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