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For instance, due to the massive advances in computers and manufacturing we've seen prices drop or stay level as the growth in the money supply has grown at a f
by randallsquared 17y ago
For instance, due to the massive advances in computers and manufacturing we've seen prices drop or stay level as the growth in the money supply has grown at a fast pace.
While I agree that this is a significant part of the explanation for why the money supply has been vastly expanded without much corresponding inflation, it's really hard to show in a simple manner, and it's worryingly close to a just-so story.