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Re: The American money capture



   Date: Sun, 1 May 1994 10:08:14 -0700
   From: Hal <[email protected]>

   (Also, note that a constant money supply in a growing economy is effectively
   deflationary.

Below, you call this a "view".  I call this a clear fact, and feel
sorry for anyone who doesn't immediately see it also!

   The money supply must increase at least as fast as economic
   growth or it will serve as an active brake on the economy, IMO.  I don't
   know what economic school this view comes from, but I first heard it from
   Milton Friedman.)

   They thought that the inflation they saw was due to psychological
   factors, people not trusting the bank, or greedy merchants trying
   to take advantage of the public.  (These arguments were echoed in
   the 1970's and 1980's, but they have of course been widely
   discredited now.  The issue was far less clear in 1850.)

Discredited but still bandied about.

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