n need not lead to a FALLING of prices (unless, due to monetary despotism it is followed by a deflation) but merely to single FALLS of the prices of formerly over-priced goods (prices having raced far ahead of note printing). While FALLING prices deter buyers - who would then be interested in postponing buying, FALLEN prices do actually promote buying. Thus, under monetary freedom, inflation could actually be followed by a boom, based on larger than normal consumer spending, on items which were so far overpriced. 7. There remains much unused production potential even in boom times. Few enterprises ever work at full capacity. This potential is, naturally, much larger in times of unemployment. There is no economic difficulty in using this potential at free market prices and wages to get rid of almost any degree Of unemployment. Under full freedom, including monetary freedom, there is no reason why this potential could not be used WITHIN A DAY to soak up all existing unemployment. There are only legal, customary and conceptual difficulties and even these could be successfully and on a large scale ignored by a minority of able entrepreneurs, financiers and workers acting in concert. This unused production potential would anyhow be more than enough to cope with the unemployment existing during the last stages of inflation and the unemployment expected by most as a result of ending inflation. In short, no new savings and long term investments would be required to deal with the anomaly of unemployment. 8. Another factor which is usually overlooked is that in all civilized countries and under normal conditions (no war or civil war and no complete exhaustion of stores due to prolonged progressive inflations or deflations) there are sufficient ready for sale goods - and, obviously, services - in the community to finance with them, under monetary freedom, the re-employment of almost any number of people, almost immediately. These stocks and reserv...
