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To: Southack
Does economic growth in your world cause *any* level of deflation?

Inflation is a monetary phenomenon. If the money supply grows at 10% a year and GDP grows at 6% a year, the inflation rate is 4%.

If money supply grows at 10% a year but GDP grows at 12%, then deflation is 2%.

412 posted on 11/29/2004 11:50:23 AM PST by Toddsterpatriot (Protectionists give me the Willies!!!)
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To: Toddsterpatriot
"Inflation is a monetary phenomenon."
414 posted on 11/29/2004 11:54:02 AM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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