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May 7, 2016 at 11:42 am
#18729
jmherbenerModerator
Yes. Cantillon effects are usually invoked to demonstrate why money is non-neutral. In response to any increase in the money stock, the prices of some goods move up to a greater extent and some to a lesser extent and the pries of some goods move up sooner and some move up latter. These changes in prices then have effects on profits and losses and therefore, production. As a consequence, the pattern of incomes in the economy change.