yes and broad money I presume includes some measurement of the money creation by banks on main street, so 200% money supply and 50^ price response could be relative deflation, relative to money creation, or inflation itself if the real money creation on main street is flat. I dont see money supply creation on main street now since there is little to invest in with an economy without manufacturing and demand contraction. which explains the rationality of bank reserve increases
But it isn't. Broad money (bank credit money) is 10* the size of narrow money (central bank money, coins, and notes). And it is only narrow money that has been increased.
And who knows what effect this has on the broad money supply.
Hugh Hednry is great anyone know the ticker of his funds
optionsupdate 1 year ago
yes and broad money I presume includes some measurement of the money creation by banks on main street, so 200% money supply and 50^ price response could be relative deflation, relative to money creation, or inflation itself if the real money creation on main street is flat. I dont see money supply creation on main street now since there is little to invest in with an economy without manufacturing and demand contraction. which explains the rationality of bank reserve increases
abdighazi 2 years ago
If it was that simple, it would be inflation.
But it isn't. Broad money (bank credit money) is 10* the size of narrow money (central bank money, coins, and notes). And it is only narrow money that has been increased.
And who knows what effect this has on the broad money supply.
neil9327 2 years ago
if the supply of money doubles, and prices rise 50&, is that inflation, or deflation?
abdighazi 2 years ago