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Pastimes : Ask Mohan about the Market

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To: Mike M2 who wrote (15556)	4/25/1998 11:30:00 AM
From: Zeev Hed	Read Replies (3) of 18056

Mike, I am not sure if the following rationalizes the expansion of the money supply. However, I hear that a lot of the commerce and pricing in the wounded currencies in the rim and in the former Soviet Union is becoming denominated in dollars (particularly large capital assets and real estate, and even in some standard consumer shops like electronics, our Asian friends will hopefully verify this). Would not such a shift need to be supported by a relatively large increase in dollar money supply which does not chase local goods (and thus will not contribute to local inflation)? Zeev

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