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Someone slapped me this article when I was trying to explain him that inflation is caused by Money Supply. Now this author is a research fellow in Cato institute and quite recognized in India. Just wanted to know the response of you guys. Do you really think that Inflation being solely caused by money...
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In the midst of our economic slowdown, the U.S. Treasury Dept has issued what they are calling the "Blueprint for Financial Regulatory Reform". The highlights, as given by an article on Yahoo!'s website , are as follows: --designate the Fed as the primary regulator for market stability...
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[quote user="A.B. Dada"] ...I still disagree completely. Price increases are not always caused by inflation of the money supply. Inflation of the money supply CAN dilute your dollar, but it isn't required to, because your dollar's purchasing power is market-specific, not overall economy...
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If you want to know why paper money hasn't collapsed, I recommend that you stop looking at this from a point of view of one who is observing society. Instead, look at this from a more individual level. Why do you desire this paper money? After all, you're knowledgable enough to know that it's...