I feel like this isn’t nearly the issue it is made out to be when you separate real growth from nominal growth. Say you have real growth but prices fluctuate a lot, why should you care? Frictional costs should decrease over time as people figure out how to hedge properly in this environment.
I feel like this isn’t nearly the issue it is made out to be when you separate real growth from nominal growth. Say you have real growth but prices fluctuate a lot, why should you care? Frictional costs should decrease over time as people figure out how to hedge properly in this environment.