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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (1500)	5/20/2003 5:06:55 AM
From: zonder	Read Replies (1) \| Respond to of 4905

That's why I'm not calling it that. Then what are you calling "that"? The Austrian School of economics defines inflation from the site: <<the essence of inflation is not a general rise in prices but an increase in the supply of money>> Then the "Austrian School of economics" is wrong. Or perhaps we are losing something in translation. Look at the composition of CPI or PPI - Inflation IS price increases/decreases, and nothing more than that. Here's an example for you: Assuming the hypothetical case of general (and high) price increases in every sector DESPITE contracting money supply, would we have inflation or not? Answer: Of course we would. Because inflation is CALCULATED without the smallest regard to the money supply. One would think that the fact inflation is measured by Producer PRICE Index or Consumer PRICE Index would give you an idea... What you have quoted is actually not far from what Econ 101 teaches - that high liquidity leads to inflation. However, saying a general rise in prices is NOT the "essence of inflation" is wrong, for lack of a better word. And so the countries we trade with do not have plunging currencies vs $US on average I don't know what you are talking about. As in, which countries are those, with which US does not trade? Uh, like, Japan? <How about you look up "stagflation" first> LOL I am happy to see you are amused, although not so content that you seem to have taken to flippant responses. I suggested you look up stagflation, because I think it is what you are talking about - inflation during lower demand. Since you said you don't know what stagflation is and you obviously do not know what to call your pet idea of what awaits the US, I still think it is a good idea you look it up.