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Inflation and Money Growth

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It is an article of faith among monetary economists that in the long run, inflation is everywhere and always a monetary phenomenon. The specific premise of this statement is that nominal spending in an economy is directly related to the nominal money stock and people’s willingness to hold it, a feature of money demand that is often termed velocity.

Suggested citation: “Inflation and Money Growth,” Federal Reserve Bank of Cleveland, Economic Trends, no. 98-02, pp. 05, 02.01.1998.

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