Re: Inflation

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Article #1745

#1745

From: William B Dwinnell
Date: Sun, 24 Jan 1993 23:06

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Okay, Norbert, let's say that we live in an economy where there is a bank
which is willing to pay 5% interest on money deposited. If anyone at
all deposits money in that bank, his nominal wealth will increase by
5% iunxx in one year, right?  Let's say someone else does not. The depositor
now has 5% more nominal wealth to play with than the non-depositor,
and is thus more able to compete in the market than he was before, whreas
the non-edpositor hasn't changed, in terms of nominal wealth. The
demand curve will shift, moving the quilibrium point, dragging prices
up with it. Thsixxx This is what I "know".  Where have I strayed?

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Path: arc1-ca.pugleaf.net!sparky!uunet!zaphod.mps.ohio-state.edu!pitt.edu!wbdst
From: wbdst+@pitt.edu (William B Dwinnell)
Newsgroups: sci.econ
Subject: Re: Inflation
Message-ID: <2455@blue.cis.pitt.edu>
Date: 24 Jan 93 23:06:58 GMT
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