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

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To: skinowski who wrote (82688)6/13/2007 4:25:33 PM
From: TimbaBear  Read Replies (1) of 110194
 
I am not an economist either, but I can see that if the total sum of money and credit would remain constant, the prices - in aggregate - would have to truly stable. If they would go up in one segment, they would have to go down in another. As the total volume of goods and services increases, the prices would have to decline, in fact.

Beware the hidden assumptions! Your model assumes currency stability. How do the outcomes change if there are protracted moves in the currency valuations?
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