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Wednesday, 9 November 2016

Capital would be maintained constant during deflation under CMUCPP

Contrary to how the inflation-conditioned mind would normally think, capital would be maintained constant under capital maintenance in units of constant purchasing power in terms of the Daily CPI during deflation.

In simple terms: capital would be decreased in nominal value but maintained constant in real value during deflation.  

It would thus promote financial and economic stability - during deflation.

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