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Non-Tech : Money Supply & The Federal Reserve -- Ignore unavailable to you. Want to Upgrade?

To: Cush who wrote (345)	8/16/2002 5:10:45 PM
From: UnBelievable	Respond to of 1379

That A Fixed Amount Of Anything Costs More Today Than It Did Yesterday happens all the time as a result of changing supply and demand for the thing. If you changed anything to everything you would be much closer. The problem derives from the fact that everything is always changing - so it is difficult to compare today and tomorrow. The definitions that Glen provided are the answer to the test question. The fact that it is a tautology which defines a word in terms of two other words that can not really be defined or measured is why it gets complicated.

To: Cush who wrote (345)	8/19/2002 9:39:26 PM
From: glenn_a	Read Replies (1) \| Respond to of 1379

Hi Cush. Sorry I'm late in responding to your Inflation and Deflation post. Cush, you had stated: ((While Money Supply can have an effect on Inflation and Deflation, I would not normally use it in helping define them.)) IMO, Money Supply is the very "essence" of deflation/inflation. That is to say, how much Money is chasing how many goods/services? And ... how much of that Money is created from Debt (as I am just now coming to appreciate)? It is important to appreciate that Inflation/Deflation does not necessarily initially show up in the CPI (Consumer Price Index). For instance, like the 1990's, the 1920's was a time of massive Credit inflation, but consumer price inflation was nowhere to be seen. Eventually inflation/deflation will show up in as Consumer Price Inflation/Deflation, but at its root Inflation/Deflation to my mind is first and foremost ... in our modern financial economy ... a matter of Credit creation. Regards, Glenn