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

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To: bart13 who wrote (68559)8/20/2006 8:44:22 PM
From: Tommaso  Read Replies (2) of 110194
 
>>> inflation is always and everywhere a monetary (excess creation) phenomena<<<

Inflation can also occur if production of goods and services declines. In a war, there is destruction and waste of goods and services, so even if the money supply does not expand (which it usually does) prices can rise. Contrariwise, if production of good and services expands, money supply can increase without inflation. That's what occurred 1980 to the present, pretty much.

It won't do just to look at the monetary side.
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