Money Growth is Not Evil

Posted on 23. Jun, 2006 by in Saving & Investing

Steve Conover over at The Skeptical Optimist has an excellent introduction to a series of posts on money’s role in the economy. Like Steve I am a firm believer in the fact that an increase in the money supply is not necessarily a red flag for inflation concerns… instead it’s a way of keeping the economy liquid and growing. Unfortunately I have seen too many people cry wolf as soon as the money supply starts to increase instead of looking at the underlying reasons why and actually trying to predict what outcome an increase would have on the economy as a whole.

But Steve has done a great job of explaining money’s role in the economy and has broken it down so almost anyone can understand it – complete with pictures! Be sure to check out this first post and stay tuned for the rest in his series.

2 Responses to “Money Growth is Not Evil”

  1. Gerard Henderson

    26. Jun, 2006

    As long as the growth in money supply does not exceed the growth in real GDP by too much.

  2. Andrew K.

    27. Jun, 2006

    Even a true monetarist advocates for steady, constant money growth.

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