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Strategies & Market Trends : Waiting for the big Kahuna
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To: kas1 who wrote (7644)10/27/1997 10:43:00 AM
From: Tommaso  Read Replies (1) of 94695
 
"friedman?! yeeesh"

Well, konrad, who is your guru? Not that Friedman is mine. Actually Friedman (ten years ago)seems to have completely forgotten that the amount of goods and services can be increased at a rate equal to monetary increases and thereby nullify any inflation.

But an 8-10 precent increase in M2 that persists for more than a year will touch off a certain amount of inflation because economies can't grow that fast--though in this case there could be quite a lag because of current overcapacity (in the Far east, mainly, it appears).
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