Depreciation Of Money
Sir, —Where depreciation exists there is no such thing as gilt-edged security. All investment, national and commercial. internal or overseas, deteriorates in exchange value under any degree of inflation. Saving in these conditions is an economic falsity, for the lender will receive in real value less than he invested. Those on fixed incomes will already have appreciated this It is likewise false for any authority to assume to borrow into prosperity on such terms. Unless the domestic value of money is kept constant or nearly so the end result of such a policy must be economic disaster. The withdrawal from circulation of supposedly excess currency will not adjust inflationary effects unless contingent steps are taken to halt artificial price-rises. When free-enterprise methods fail, price control becomes unavoidable.—Yours, etc., FRANCIS WM. HEAL. March 25. 1961.
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Press, Volume C, Issue 29474, 28 March 1961, Page 3
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137Depreciation Of Money Press, Volume C, Issue 29474, 28 March 1961, Page 3
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