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Text File  |  1992-12-18  |  943 b   |  24 lines

  1. Newsgroups: sci.econ
  2. Path: sparky!uunet!usc!cs.utexas.edu!asuvax!ncar!noao!stsci!stsci.edu!jackson
  3. From: jackson@kaos.stsci.edu (Bob Jackson)
  4. Subject: Re: GM Plant Closures Again? Won't Solve the Economic Problems
  5. In-Reply-To: mkohlhaa@silver.ucs.indiana.edu's message of Thu, 17 Dec 1992 17: 42:42 GMT
  6. Message-ID: <JACKSON.92Dec17154850@kaos.stsci.edu>
  7. Sender: news@stsci.edu
  8. Reply-To: jackson@stsci.edu
  9. Organization: Space Telescope Science Institute
  10. References: <BzBpB7.6x7@usenet.ucs.indiana.edu> <Mf=sbt30BwwbI4Vvts@transarc.com>
  11.     <BzEqMA.D9z@apollo.hp.com> <BzEzv6.HHA@usenet.ucs.indiana.edu>
  12. Date: Thu, 17 Dec 1992 20:48:50 GMT
  13. Lines: 9
  14.  
  15. A naive question.
  16.  
  17. If INFLATION is defined at the overall price level rising
  18. Then how can that occur without an increase in the money supply?
  19.  
  20. For prices to go up, then incomes must go up in order to pay
  21. for the higher prices.
  22.  
  23. In these scenarios, how does everyone's income increase in real term?
  24.