Tool prices are initially set to costs, and then on day 200, Tool-1's price is set to 1.5 x tool-1 cost, - a high markup - and all other prices are set to just prices.

In this case, however, equality is not achieved. The idleness of those traders which sell valuable tools rises, and that of the remainder falls. Some of the latter are unable to pay off their debts in the time available, and the number of IOUs in circulation rises relentlessly: an inflation of the money supply sets in.

The cure, on day 500, is to drop prices back to costs. The debts incurred over the previous 300 days get gradually paid off, and the money supply stabilizes. While debts accrued are being paid off, the idleness of traders holding IOUs rises.

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