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Strategies & Market Trends : Heinz Blasnik- Views You Can Use
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To: yard_man who wrote (2402)6/11/2003 12:55:34 PM
From: GraceZ  Read Replies (3) of 4912
 
Money is just a medium of exchange. If the number and value of exchanges goes up the money supply has to grow in order to provide enough "medium of exchange" to transact. Oddly enough the long run history of the world shows that economic growth is the norm not the exception. The negative consequences of the money supply not growing fast enough to cover the growth in the economy is well documented. Back before people fully understood this we were plagued by debilitating periods of deflation and banking panics.
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