True. As the following graph shows, the M2 money supply and inflation began increasing in the sixties, in mere anticipation of the Carter presidency.
True. As the following graph shows, the M2 money supply and inflation began increasing in the sixties, in mere anticipation of the Carter presidency.
It's amazing what a growing stock market and a growing GDP will do to both the money supply and the CPI, both in the 1920's and the 1980-1990's. One has to wonder why the Federal Reserve would remove liquidity in order to stop it both times. I wonder if the myth that economic growth causes inflation will ever die.