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Sunday, 18 November 2012

Most destructive assumption ever made by mankind

Most destructive assumption ever made by mankind

The stable measuring unit assumption. Assuming, in practice, that money is perfectly stable during inflation and deflation.

The Historical Cost Accounting model is based on the stable measuring unit assumption. Ban Historical Cost Accounting (i.e., the stable measuring unit assumption) and you stop the effects of inflation and deflation.

Nicolaas Smith

 Copyright (c) 2005-2012 Nicolaas J Smith. All rights reserved. No reproduction without permission.

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