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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (71442)	12/9/1999 1:11:00 AM
From: BGR	Read Replies (2) \| Respond to of 132070

Wayne, As long as banks are not required to have a 100% reserve (which will bring the entrie credit system to its knees) money is created (i.e. money supply increases) every time a bank lends money. What's that to do with measuring the needs of economic activity!? As for other measures of inflation, let's first resolve the primary question. How do you measure the needs of economic activity for a particular economy/country in question (like the NAIRU attempts to do)? Once that is resolved, we wil proceed to the effects of money supply exceeding the need. -BGR.