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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Clarksterh who wrote (57262)4/1/2006 10:00:17 PM
From: Dave  Read Replies (2) of 110194
 
"I'd bet that increases in money supply do not always lead to increased inflation"

There are always exceptions to the rule and, shooting from the hip, I bet you can find quite a few.

"And, more interestingly, I'd bet that tightly controlling money supply probably has some seriously negative effects."

Tightly controlling the money supply does, also, have negative effects, b/c as the economy grows, increasing the money supply actually has the effect of driving down (or perhaps I should say, "stabilizing") interest rates.

If you want to learn more, I'd focus your internet search on Keynesian Economics and the IS-LM curve.
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