RE: Re: Monetary inflation/deflation

[David Shemano]

In reply to Michael Perelman:

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David we were talking about something else -- not the inflation, but the
relative value of currencies.  Yes, standard theory suggests that pumping
up the money supply is the cause of inflation, which then makes a currency
eventually fall.

Other forces can also explain inflation, eg market power, but the
monetarists usually ignore that possibility.

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To the extent a monopolist withholds supply to increase the price of the
goods and services, I would not call that a monetary inflation.
Analytically, why do you want to conflate the two (increases and decreases
in the quantity of the unit of account as compared to increases and
decreases in the quantity of goods and services).

David Shemano