Supposedly, we are now descending experiencing deflation,.
which causes, or results from, recession.
My question is: where did the money go? We have seen
major inflation over the last 5 years (housing and commodities),
which is, as we know, a monetary phenomenon - the Fed has run
the printing press full blast, with their 'easy money' policy.
Now, bust follows boom, and prices fall... but the money is still
out there, yes/no? Demand should be constant, with boatloads
of bux chasing goods.... where are all the dollars? Hw can
general price level drop?
- posted 11 years ago