Very close. The price of
all goods and services are stabilized through manipulation of the quantity of money.
So in our thought experiment universe:
- One hour of my best labor (which doesn't produce eggs or milk) can still demand 50 MØ
- The price of milk skyrocketed to 2 MØ per gallon
- The price of eggs collapsed to 0.50 MØ per dozen
We can make immediate decisions over time as individual prices change because the general price level has not.
My best labor can now buy only 25 gallons of milk per hour but now can overdose on eggs at 100 dozens. No one in this universe will be happy about milk, but they also won't be complaining about eggs.
Over the time passed to bring this new circumstance, the relative value of the money in our pockets remains unchanged.
Nonsense. You are claiming to have stabilized the prices of "all goods", but in reality you've stabilized the prices of none of the goods.
Your goal, of course, is to have a stable value for the unit of currency. This is a fool's errand. There is no objective yardstick against which to measure the currency. The best you can do is make a basket, but then you are just measuring your own biases, and you'll wake up tomorrow with an obsolete basket because the world is not and cannot be made into a static system.
In your example, you imagine that "your best labor" is a worthwhile measure, but it isn't. While you were sleeping, someone has invented a machine to make your job easier, devaluing your labor, or someone has retired from your profession, decreasing supply and increasing your value, or
something. That your labor can "still demand" a set price is an abomination, not a goal.