RE: More on Money Supply and inflation
Posted on: January 27, 2025 at 15:03:31 CT
sarasotatiger MU
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We understand this. this is why when the government invest $1.00 in th3 economy you get roughly $1.25 back and when you cut spending you only get .67 in return. One of the reasons for the Staglation of the early 70's was the bills coming due from Vietnam. the federal government should have increased a tax to pay for it and the inflation wouldn't have been as bad. There is always timing involved. After covid the demand was high. I know my wife spent everything on anything. I am glad that you looked that up. There are a lot of principles in Macro economics. It isn't an exact science.
Edited by sarasotatiger at 15:05:10 on 01/27/25