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Non-Tech : Money Supply & The Federal Reserve
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To: glenn_a who wrote (343)8/16/2002 8:12:24 AM
From: Cush  Read Replies (2) of 1379
 
Inflation and Deflation.

Hi Glenn. These are just a few quick thoughts before I have my coffee.

You defined these two as-

Inflation = an increase in money in circulation compared to the supply of goods and services in an economy.

Deflation = a decrease in money in circulation compared to the supply of goods and services in an economy.

While Money Supply can have an effect on Inflation and Deflation, I would not normally use it in helping define them.

For me-

Inflation - a fixed amount of anything costs more today than it did yesterday.

Deflation - a fixed amount of anything costs less today than it did yesterday.

Perhaps your post was a deeper perspective on my simple view. I'll go get a coffee and take another look.

That was an interesting post.

Beginning to feel like I'm back in school.

My reading these days runs more to Carl Hiaasen than to Thorstein Veblen. <gg> And, I enjoy it more.

Cush
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