Just started reading Hayek’s Prices and Production and I have a couple of questions.
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Hayek says in a barter economy that interest will keep the production process from becoming to long, basically ensuring that the proper amount of consumer goods and capital goods are produced. Having a hard time visualizing how this would take place in a barter economy. How exactly does interest in a barter economy achieve this? pg. 45
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What does Hayek mean by elasticity of the volume of money? pg. 45,46