Reply To: Some questions

#18765
kbxcoop
Member

During the boom part of the boom bust cycle, we understand that profits due To monetary inflation causes capital consumption. During the boom part, some prices are going up faster than others. For example, prices of houses went up faster than the price of cars. In this scenario, since resources are being drawn to the housing market, and less resources are being drawn to the car industry, would there be more capital consumption in the housing market or car market?