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To: LLCF who wrote (52688)5/13/2000 11:23:00 PM
From: Hawkmoon  Read Replies (1) | Respond to of 116923
 
Printing more money is inflationary period IMO.

I think you should omit the period.

Printing more money in order to monetize excess debt is quite a different animal than printing the necessary money to handle the economies ability to grow.

If the economy is growing at 6% and money supply is negative or slightly positive, the result is a higher cost for capital, or a shortage of it. That creates higher costs, higher prices, and a weaker economy.

There is also the question of monetary velocity, or the rate/speed that business transactions take place. I believe that much of US economic growth is doing to a faster velocity for money, showing greater efficiency in the use of available money supply.

Hardly Inflationary.

Regards,

Ron