Little can be achieved without sound money. It is the bedrock of sound government.
—Margaret Thatcher. Margaret Thatcher, The Downing Street Years, 1993.
When it comes to money there are three major issues to consider:
- The stock of money (monetary inflation and deflation).
- The wealth of nations (price inflation and deflation).
- The credit cycle (credit inflation and deflation).
In order to properly understand and deal with these, they must be analyzed and treated separately.
