To: Alia
You have your cause and effect all bassackwards. Inflation is and only is the creation of money at a higher rate than the market can absorb. All the buying and selling n the world has nothing to do with inflation. Central bank hoarding of money can mask inflation by sucking the excess money out of the market instead of letting it bid up prices but eventually that money has to get put back into the market and the result is the price rises that were avoided by the hoarding. You sound like you took Economics as a required course for a finance degree. Those courses are taught by, at best, Keynesians, and at worst by financiers. They are not Economics. For the best primer(short) from which to learn economic reasoning read Henry Hazlitt's Economics In One Lesson or Conquest of Poverty. If you are then still interested in Economics, read Ludwig von Mises's Human Action. If you are really interested then go for Ricardo and Adam Smith, etc, but they are all pretty well condensed in von Mises. If your prof wrote Greek-looking algebra-seeing formulae on the board he is at best ignorant of economics or at worst a charlatan.
53 posted on
11/29/2006 7:27:24 PM PST by
arthurus
(Better to fight them over THERE than over HERE)
To: arthurus
While I appreciate your lecture, your post led me to presume you were an "inflation" fanatic, meaning, a hysteric. Obviously, I stepped on your toes, and for that I ask your pardon.
I, too, use the term "inflation" as exactly as you have described; and in that specific, concise meaning: "Inflation is and only is the creation of money at a higher rate than the market can absorb."
I've witnessed far too many wrongful attachments of meaning to the term "inflation" on FR posts.
57 posted on
11/29/2006 7:32:37 PM PST by
Alia
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