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It's all relative. Expanding the money supply has an inflationary effect, even if the absolute effect is simply to slow deflation (which is still relative infl
by johnrob 18y ago
It's all relative. Expanding the money supply has an inflationary effect, even if the absolute effect is simply to slow deflation (which is still relative inflation).
- cchooper 18y agoChanges in the money supply do not appear to be correlated with short term inflation at all, so it's not certain that short term expansion will produce any effect.
- hardik 18y agoBut short term expansion will surely not be enough to quell the crisis. Also, the point that other commentators have made on falling value of the currency stands valid. At the moment, America is facing twin problems of slowing economy and mounting debt; whose classical "cure" point to different directions.