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To: Proud_texan
Wasn't there a huge increase in the money supply in '99-'00 and, if my memory is correct, why wasn't there a corresponding inflationary reaction?

If I got it right, I think we were actually hiking rates at that time.

Its part of the reason so many folks blamed Greenspan for "bursting the bubble".

Also, I'm not sure if it was then exactly, but Bernandke might have made (or stolen) his friedman quote about "helicopters" to combat deflation.

I'm pretty sure we were decreasing the money supply around then, because only a couple of years later we started to rapidly increase it via rate cuts.

20 posted on 11/16/2005 10:47:19 AM PST by Sonny M ("oderint dum metuant")
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To: Sonny M
"I'm pretty sure we were decreasing the money supply around then"

You may well be right as I'm relying on memory as I can't find any historical money supply numbers. Weird, I'd of thought they'd be all over the place.

26 posted on 11/16/2005 11:04:30 AM PST by Proud_texan ("Moderation in the pursuit of justice is no virtue." - Barry Goldwater)
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