Thursday, December 29, 2016

But who's counting?

I got another link to something on inflation: a SlideShare presentation titled Aggregate Demand, Aggregate Supply, and Inflation. Slide #8 shows arrows pointing left for cost-push and arrows pointing right for demand-pull, just like I was talking about yesterday:

Slide #8
Know what else I found?

Slide #3
An increase in the quantity of money causes inflation.

And this one:

Slide #4
An increase in the Federal deficit causes inflation.

Wanna know what I didn't find?

Slide Not Found
An increase in the use of credit causes inflation, just like an increase in the quantity of money. And then, on top of that, there is the extra cost of interest. So you get demand-pull from spending credit, and cost-push from paying to finance that spending.

But who's counting?

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