Thursday 26 August 2010

to increase circulation is to increase the money supply

to increase circulation is to increase the money supply, studied economics people know that 70 years time there too much money supply, caused inflation. was caused by a monetary theory, inflation will print money, more money to increase, inflation is inevitable. Greenspan presided over a total of 18 years of U.S. monetary policy, which for 18 years, every time he uses are printing money to solve the problem, but no inflation ah, in this phase there is a new argument that inflation and money is not related to . But this idea is very temporary, Xian Xiang, whose main the reason is a Li Liang Yin Wei Womenchuxian suppress the Tong Zhang a, the strength of Jiu Shi Quan Qiuhua,globalization has the Lao Dongli into the world market, the developed to suppress the wages, real wages in the United States, there is no growth in 20 years. wage growth adjusted for inflation, no growth. Another is the power of IT, but also reduce production costs, the two that makes the money supply for the time being does not cause inflation, money supply into the capital markets, asset markets, caused the stock market, rising property market.

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