Source: EconLog
by Scott Sumner
“There is no obvious reason why Spain being a bit poorer should make Spanish workers wish to work less hard. If anything, you’d expect extreme poverty to be a spur to work harder, if only to avoid starvation. The real problem is that negative monetary shocks act as a sort of price control, they push an important market price out of equilibrium.” (10/18/24)
https://www.econlib.org/monetary-shocks-a-natural-experiment/