" (Abschn. 1, Kap. 2/2, end of section c): "...Observers who studied the phenomena of money circulation, only one-sidedly on paper money with legal tender, had to overlook all the inherent laws of money circulation." II HOW, ON THE OTHER HAND, 10 MISGUIDED ATTEMPTS TO FIGHT INFLATION COULD LEAD TO UNEMPLOYMENT It must be admitted that certain attempts to stop inflation, imperfect attempts, measures which do not end inflation properly, can cause unemployment, will do so and usually have done so in the past. All these wrongful measures are based on monetary despotism. Inflation is just one aspect of monetary despotism and unemployment is another. The anti-inflationary "measures" discussed here do not completely end and prevent inflation but, instead, continue and preserve its preconditions and allow if to blow up at any time again. There is neither a justification nor a need for continuing monetary despotism and thus burdening us with either inflation or unemployment or both. "STOPPING" INFLATION BY ANY OF THE FOLLOWING WRONG STEPS WOULD, INDEED, BRING ABOUT SOME UNEMPLOYMENT - AND THE LIST IS NOT COMPLETE: 1. Stopping inflation suddenly and without warning - by stopping the government's note printing presses - while at he same time continuing to suppress the issue of alternative sound private exchange media and the use of alternative sound standards of value and upholding all restrictions on price and wage reductions and then waiting until the inflated prices - which had raced ahead of the printing presses - do finally come down, gradually, in spite of the restrictions, but much slower, due to them, back to the market prices corresponding to the remaining circulation of state paper money. Thus unemployment must result. The economy has then no adaption elasticity left for the short run, due to over-regulation, particularly monetary despotism and wage and price fixing. It can occur when the whole process is a sudden and imposed one instead...
