Part 5.2: The inflationary process and the economic effects of inflation

Inflation has further pernicious consequences: It distorts business calculation and accountability, as the profit and loss statement of an enterprise does not reflect reality any more. 

Part 5.1: The inflationary process and the economic effects of inflation

Price changes of goods and services may arise due to variations in their supply and demand or due to changes in the purchasing power of money. The former case was to be called by Mises ¹ “good-induced-changes” and the latter case “cash-induced-changes”.

Part 3: The regression theorem, trade and production and the Say’s Law

Money must have a pre-existing price on which to ground its demand, but if supply and demand determine the price, how can it be that this demand depends on a pre-existing price? Mises solved this confusing circular trap in 1912 with his regression theorem.