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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (50393)	1/20/2006 12:04:24 PM
From: GST	Respond to of 110194

<Deflation in a classic sense a decline in money supply.> This is a meaningless definition of deflation in my view that does not correspond to its proper usage or definition. We do not experience inflation just because there is an increase in money supply, nor do we experience deflation if there is a contraction in money supply -- expansion and contraction of money supply do NOT equal inflation and deflation. These latter terms refer to the purchasing power of a currency and it is the gain or loss of purchasing power that defines inflation and deflation.