It is true, if there is an absolute decrease of the quantity of money, demand will fall off, prices will have to go down, and a serious depression will be the result. Normal conditions will return only after all prices have been lowered, including the prices of the factors of production, especially wages. This may be a long and painful process, because some prices, e.g., wages, are rigid and some prices and debts are definitely fixed for a long time and cannot be altered at all.
