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Inflation question - Input Junkie
September 20th, 2009
08:12 pm


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Inflation question

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Date:September 21st, 2009 01:53 am (UTC)
It's a matter of conjecture. If the supply of money grows faster than the aggregate demand for it, there will generally be inflation. The demands include consumption, savings, government expenditures, debt service, balance of payments, etc. with different interdependencies.

If the supply does not grow fast enough, there will generally be economic slowdown and rising interest rates.
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