i . Social Consequences of Changes inthe Value of Money (1923)

Money is only important for what it will pro-cure. Thus a change in the monetary unit,which is uniform in its operation and affects alltransactions equally, has no consequences. If,by a change in the established standard ofvalue, a man received and owned twice asmuch money as he did before in payment forall rights and for all efforts, and if he also paidout twice as much money for all acquisitionsand for all satisfactions, he would be whollyunaffected.

It follows, therefore, that a change in thevalue of money, that is to say in the level ofprices, is important to Society only in so far asits incidence is unequal. Such changes haveproduced in the past, and are producing now,the vastest social consequences, because, as weall know, when the value of money changes, itdoes not change equally for all persons or forall purposes. A man’s receipts and his out-goings are not all modified in one uniform pro-portion. Thus a change in prices and rewards,as measured in money, generally affects differentclasses unequally, transfers wealth from one to