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To: Jack Black
Why do you need to increase the money supply. A finite amount of money would cause prices to fall over time, rewarding savers and builders

So my $200K house would be worth $190K 5 years later and in your book that is good? Falling prices is not good. You need to keep increasing the money supply or it is impossible for the economy to grow.

33 posted on 04/17/2006 1:57:06 PM PDT by Always Right
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To: Always Right

The money supply needs to be controlled to keep inflation under control. If you reduce the supply too much deflation can result in a depression. As the population increases, additional money would need to be created.


38 posted on 04/17/2006 7:29:38 PM PDT by GeorgefromGeorgia
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