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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 77.15+4.3%10:35 AM EST

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To: John Stichnoth who wrote (23794)3/19/1999 8:15:00 PM
From: James A. Shankland  Read Replies (1) of 77398
 
It's not just you sitting on the sidelines with part of your money. Aggregate money supply (M2 and M3) are growing at well above inflation--something like 8-10% p.a.

Hmm. Can you explain what causes this, and what this means in practice? It seems like a bullish indicator, as cash would be available to purchase things like stocks. On the other hand, I'm a little unclear on the whole concept: I don't understand how the money supply can change, unless the government prints more. After all, if I buy a fancy car or a bunch of stock, my money supply changes, but the cash hasn't disappeared -- the person who sold me the asset now has it. What am I missing?
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