Hi Professor Herbener,
Reading Man, Economy, and State with Power and Market on Triangular Intervention (p. 1078), I don’t understand this sentence: “Overall price maxima are equivalent to imposing a minimum on the purchasing power of the money unit, the PPM [Purchasing Power of Money].”
So in breaking this down, this is as far as I’ve gotten: triangular intervention (government regulating trade between individuals) can involve a price maximum, which theoretically allows consumers to purchase goods more readily than if the prices had no ceiling. But I don’t see how this equates to a price minimum of the PPM.
Is there a simpler way I can understand this?