DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - The Greater Than Great Depression Depression?

**ephennaCypota** · 02-08-2006, 05:09 PM

Pogo
Only if you reach such a determination strictly on the basis of rate adjustments. Factor in growth in the money supply and you get a much different picture, one that shows the Fed under Greenspan to indeed be an engine of inflation. All of which is factored into the final measure of inflation.(although I am not sure what you mean by "rate adjustments") The overall inflation rate has been incredibly low in the last 25 years, and in all likelyhood even the official rate is somewhat overestimated as it tends to not represent improvements in product quality (i.e. even if the average computer today costs the same as one a year ago, the likelyhood is that there are substantial improvements in the capacity or quality of the product for that same price).

02-08-2006, 05:09 PM	#13
ephennaCypota Join Date Oct 2005 Posts 534 Senior Member	Pogo Only if you reach such a determination strictly on the basis of rate adjustments. Factor in growth in the money supply and you get a much different picture, one that shows the Fed under Greenspan to indeed be an engine of inflation. All of which is factored into the final measure of inflation.(although I am not sure what you mean by "rate adjustments") The overall inflation rate has been incredibly low in the last 25 years, and in all likelyhood even the official rate is somewhat overestimated as it tends to not represent improvements in product quality (i.e. even if the average computer today costs the same as one a year ago, the likelyhood is that there are substantial improvements in the capacity or quality of the product for that same price).
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