Quote:
Originally Posted by #-3
Not entirely wrong, but the idea that the supply of money has a direct 1 to 1 link to the rate of inflation is pretty flawed, almost as much so as the invisible hand. There are other things driving the economy, like idle capacity, savings, debt, import/exports...
I think you'd have a hard time arguing the money supply was even in the 3 for drivers of inflation.
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Right.
But make no mistake, the liberal government spending is contributing to inflation. The deficit spending is undermining the goal of raising interest rates.