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To: Tomas who wrote (61139)	3/1/2000 9:05:00 AM
From: Tommaso	Respond to of 95453

>>But Vigrass is on to something. Properly defined, "inflation" doesn't mean merely that some prices are rising, but that essentially all of them are -- because the value of money is falling. In the words of Uncle Miltie (that's Nobel economist Milton Friedman to you), inflation is "always and everywhere a monetary phenomenon" -- i.e., too much money chasing too few goods and services. The most famous inflations resulted from governments, such as Germany's in the 1920s, printing money without restraint. It wasn't because some product or commodity -- even an important one, such as oil -- became scarce or expensive.<< Tomas--thanks for this as for your many other informative posts. Of course, what this person Vigrass does not seem to know is that the Federal Reserve has in the last two years caused the US money supply to grow at rates that as far as I can tell have never occurred since perhaps the middle of the Civil War, long, long, before there was any Fed. This "Greenback" period, of paper money not backed by gold, caused huge inflation. We are now in the middle of a huge unplanned economic experiment. If we do not soon (within a year or two) begin to have about 10% per annum inflation, then there is something fundamentally wrong with monetarist theory. That will be fine with me. It will mean that the United States can print all the paper money we want and we can spend it on things from other countries.