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To: ahhaha who wrote (88809)	9/11/2007 5:46:37 PM
From: GraceZ	Respond to of 306849

I had said,"There are times when increasing the money supply causes interest rates to rise, and there are times when increasing the money supply causes them to fall. After all, genius, shouldn't an increased supply cause the price of money to fall?". Want to refute that? Elroy was too busy studying Econ 101 at Bezerkley in the late 70s to pay much attention to the Fed continually adding to the money supply ....all while interest rates continually rose ever higher. He never got past supply demand curves to how inflation expectations can affect the price of money.