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To: Oblomov who wrote (249512)7/11/2003 10:23:28 AM
From: Jeff Jordan  Read Replies (1) | Respond to of 436258
 
>>>then why did we have price inflation in 1993? Money supply was shrinking then. <<<

I think because we had real growth in the economy and the demand for goods and services WAS REAL!

The spending from the Reagan build-up trickled into the economy created work for everyone....employment is a good thing. It doesn't cause inflation!IMO



To: Oblomov who wrote (249512)7/11/2003 10:28:12 AM
From: Bid Buster  Read Replies (1) | Respond to of 436258
 
If you look at historical m3 and cpi you'll note they run up together...esp since 1973 when the last peg to the dollar was removed and the massive money print job started thus driving consumer prices up...note how flat inflation was from 1950 to 1973.


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