Heinz Blasnik- Views You Can Use Message Board

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Strategies & Market Trends : Heinz Blasnik- Views You Can Use

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To: UnBelievable who wrote (1517)	5/19/2003 11:52:33 PM
From: gpowell	Read Replies (1) of 4912

When you increase the currency faster than the rate of growth of real goods and services you get inflation. In fact that's the definition of inflation. MoneyStock = PriceLevel X Output/Velocity It is possible to get money supply growth and falling output without inflation. Is the money stock growth accelerating? economagic.com economagic.com economagic.com economagic.com The definition of inflation is: the long run continuous increase in the average price level. It is generally accepted that money stock growth is the only necessary and sufficient requirement for inflation. Shocks to prices are not inflation they are simply price adjustments. So if you want to know if you have inflation don't look at prices. economagic.com

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