The principle of "everything tends to its marginal cost of production" dictates that goods and services tend towards their production costs. This is deflationary, which central banks counteract by expanding money supply. However, this method is not sustainable since economies cannot grow infinitely and this manipulation causes economic bumps on the road; It creates booms while printing money but results in bust phases where many debts are no longer able to be repaid leading to overall financial instability long-term.

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