australian money supply rockets, page-6

Hi Wod,

Inflation is an increase in money and credit in circulation without an equivalent equal increase in production.

Higher prices are simply a result or effect of inflation. They are not the cause!

I'm not sure if the Oz situation is the same as the USA's. Over there, the Federal Reserve is the source/origin of increased money in circulation.

I suspect the same is true here, that it is the Reserve Bank that is responsible for increased money supply - but I'm not certain.

In any event, the commen cry that it is the price of oil, or food, or services, or wage demands that is the cause of inflation is a nonsense.

They all indicate inflation but do not, in themselves, cause it.

But unfortunately the media and the populace don't recognise that, nor do they see it that way.

fwiw