I was actually reminded of this thanks to this new thread. z1235’s response still does not make complete sense to me. For one thing, Salerno names what is happening as one of the four types of deflation, and z1235 says it is in fact not deflation. Either way that is more of a semantics issue. I’d still like an explanation of how when the supply of something decreases, it’s value also decreases. Are we just saying there was a realization that the peso was in reality worth so much less that it’s net value still decreased even while the factor of deflation was pushing it up?