World Class Editorial - IIPM

But again, this phenomenon results exactly from two features: gold’s quality of ‘moneyness’ and the physical limitations upon its supply.Ultimately in an inflation, the surfeit of available money (often magnified by the consequent initiation of a credit expansion) boosts the price of all manner of economic goods beyond what seems their sustainable ability to generate real income – that is, beyond their capacity to give rise to a flow of goods and services with which to satisfy human needs. Put another way, many things come to be traded for more ‘money’, but they represent no extra substantive addition to ‘wealth’.

Source: IIPM - Business & Economy

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