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Old 07-04-2009, 10:20 AM
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doobnVA
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Quote:
Originally Posted by tnrtinr View Post
I have just explained in the same post why that is not always true. They are two different concepts and an increase in money supply is NOT the same thing as INFLATION!!! .
No, they are not "the same thing", but they are not completely independent of one another. Money supply has a DIRECT impact on inflation, even according to the website you're so fond of quoting from.

You're saying money supply doesn't cause inflation, and you're just plain wrong. IT absolutely does, and everyone but you seems to recognize it.

You're telling me that inflation isn't the result of increased supply of money, even though the web site you keep pasting from says it is, economists say it is, even the head of the Federal Reserve says it is. In short, everyone knows that pumping more money into the economy CAN and probably will cause some sort of inflation. Whether it's monetary inflation, or whether that monetary inflation leads to price inflation, it's inflation and it's caused by increasing the supply of money.
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