Money Madness

November 1977
National Review;11/25/1977, Vol. 29 Issue 46, p1347
This article focuses on the impact of the increase in money supply in the U.S. on the economic conditions in the country. The money supply has been increasing at an annual rate of more than 9 percent in the present year. Recent rates of money growth would result in a rate of growth in nominal gross national product of around 12 percent. The difference between a 12 percent growth of spending and a 5 percent growth of production will result in at least a 7 percent inflation. The increase in interest rates will make it more costly to hold idle funds in the form of currency or check deposits. The U.S. Federal Reserve Board has made a big mistake by buying too much of the government's deficit.


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