how does the federal reserve create monetary inflation???
i was told this: " inflation is two-fold. Firstly, the Fed pushes new reserves into the system via the OMOs in order to try to bring the FFR down. Secondly the ‘commercial banks pyramid loans on the basis of those reserves.’ So normally if the Fed increases the monetary base (not typically notes and coins but more commonly by increasing the total quantity of reserves in the system held on account with the Fed itself) by 100 billion you might expect an actual expansion of the overall money supply of maybe 1 trillion (in a very simple example)."
found here the actual procedure of creating money (alt thread)
how does the federal reserve create price inflation???
i am not exactly sure this link – http://blog.mises.org/archives/010741.asp#c604991
say:
“In an online debate with the Atlantic’s economics writer, Megan McArdle, Shell observes with disapproval that, when prices are adjusted for inflation, Americans today spend '40% less on clothes, 20% less on food, more than 50% less on appliances, about 25% less on owning and maintaining a car’than they did during the early 1970s. Over that same period, Census Bureau tables show, US median household income rose by at least 18% in constant dollars . . .”
but this link http://www.lewrockwell.com/north/north555.html
say"
“..contraction of economic liberty. There was economic growth, but it was not spectacular after 1973, when real wages grew stagnant for two decades. The stock market did not outperform general economic growth. After taxes, it did not match economic growth.”
and dis link http: //www.lewrockwell.com/rockwell/worse-off.html
it say: “Indeed, wages have declined in real terms by 2 percent in the last three years.”
written in 2006.
now do you mean how does the federal reserve create price inflation of monetary inflation???
one article seems to indicate that that since the 1970’s prices (adjusted for inflation) have dropped..that would seem like a hidden saving s account.
another links says that for two decades after 1973..wages were stagnant, relative to prices i guess??
but after 1993 , during the “… because the Fed chose to open the money spigots, the amounts of new money pouring into the above-mentioned sectors was far greater than could be sustained in a profitable manner…” http://mises.org/daily/1019 period …i guess things really improved until 2003 or so.
so i dont know who is correct.
someone touting prixiology says that every new unit of money diminishes the purchasing power of all the other moneys.