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From: chenr@tilt.FUN (Ray Chen)
Newsgroups: net.politics.theory
Subject: Re: The gold standard.
Message-ID: <237@tilt.FUN>
Date: Wed, 13-Feb-85 02:00:49 EST
Article-I.D.: tilt.237
Posted: Wed Feb 13 02:00:49 1985
Date-Received: Wed, 13-Feb-85 07:43:35 EST
References: <613@ukma.UUCP> <> <1600@bmcg.UUCP>
Organization: Princeton University EECS Dept
Lines: 15

> --Bill Price    uucp:   {decvax!ucbvax  philabs}!sdcsvax!bmcg!bprice

> [I have not done an exhaustive
> study of the following conjecture, but what I have done supports it to 1.000:
> all inflation (overexpansion of the money supply) has been caused by
> government.]

I'll say you haven't done an exhaustive study.  Have you ever heard of
supply shocks?  They cause inflation quite nicely by making necessary
good(s) more scarce, hence more valuable, and thus lowering the purchasing
power of the money in circulation thereby debasing the currency.  All
without the government doing a thing.

	Ray Chen
	princeton!tilt!chenr