# Price distortion Summary::the expansion of the money supply distorts prices and resource allocation. # Notes First, the expansion of the money supply inflates the prices of investment assets. The inflation of market prices for investments makes the “market values” of the billionaire’s investments increase artificially. Second, monetary expansion allows billionaires to pay suppliers with money that has a reduced value before those suppliers realize it. Lower prices for capital goods increases profits, which helps drive investment asset prices higher. # Links