Re: Printing Money

[John Gelles <jjgelles@xxxxxxxx>]

> On Thu, 23 Feb 1995, Jim Devine said:

> >But note that this hyperinflation is really caused by the
> >civil war, social conflicts, etc. rather than by the
> >printing of money.  The latter is just a symptom.
> >...

  Which, On Fri, 24 Feb 1995, prompted Alan G. Isaac to write:

> Would you agree that we can say the conflict etc. leads
> to a reliance of inflationary finance, which in turn
> generates the hyperinflation? The "printing of money"
> then remains a proximate cause of the hyperinflation.
>
----------------------end Devine/Isaac --------------------
begin Gelles:

	Is not the "SPENDING" of the printed money (or using up
	of extremely low interest credit) the proximate cause
	of the dangerous inflation?

	If the government in distress pays its bills for wages,
        materials,rents, etc., and convinces the receivers to
        save "for the future" and not bid up the price of
        available items, then is not the "CITIZEN's PANIC" the
	proximate cause of the dangerous inflation.

	Knowing the liklihood of panic if money/credit is not
        kept from purchasing more than necessary, as it is created,
	is not government's "failure to TAX" or PENALIZE purchases
	that are in violation of law (contingent tax law, that is),
	made during declared periods of inflation emergency, the
	proximate cause of dangerous inflation.

	Knowing enough about money and how high short term interest
	can remove it from the economy, is not "use of unemployment"
	to help control inflation, rather than tax policies to flood
	markets with goods* and flood banks with savings, "criminal"?

	*To make goods abundant requires taxes that encourage production
	and automation and discourage waste of labor or materials.

    .--------------------.-----------------------------------------------.
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