Monday, January 22, 2007

Markets in everything, everywhere, anytime: inflation in Tahiti, XVIIIth century

The best post I've read today is Bernard Salanié's "L'inflation chez les nobles sauvages" , on the dynamics of a particular business relationship between Captain Cook's sailors and the female population of Tahiti, around 1770. The story seems to be yet another proof for Milton Friedman's 'inflation is always and everywhere a monetary phenomenon', or, better said, a carpenter's nails' phenomenon in this particular case...

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