Partypoker home | Party Poker | Pokerstars page | Poker School | Message Board | Partypoker Links | News | Scorepoker | Other Sites | Updates | Search | Find | DMOZ | Players | Poker Room Overview | Poker Hands | Poker Articles | Casino Games | Online Casinos | Poker Glossary | Partypoker Casinos | Archives | Tigergaming
February 15, 2005
P is the general las vegas price level of consumers' goods, DC is the aggregate demand for consumers' goods and SC is the aggregate supply of consumers' goods. The idea behind this formula is that the general price level of consumers' goods will rise only if the aggregate supply of consumers' goods goes down relative to the aggregate demand for consumers' goods, or if the aggregate demand increases relative to the aggregate supply of las vegas consumers' goods. Based on the idea that total spending is based primarily on the total amount of money in existence, the economists calculate aggregate demand for consumers' goods based on the total quantity of money. Therefore, they posit that as the quantity of money increases, total wsop spending increases and the aggregate demand for consumers' goods increases as well. For this reason the economists who believe in the Quantity Theory of Money also believe that las vegas the only cause for rising prices in a growing economy.
Grease of the total quantity of partpoker money in existence, which is caused by monetary policies of central banks.
The quantity of money theory las vegas has been ennunciated repeatedly, and is the logic behind hard currency systems such as the gold standard and "tight money policies". However, its current form is attributed to Milton Friedman who coined the term "monetarism". The simple model takes the Money Supply, with particular attention to M1 (see money supply above) and sets a target for money supply growth that is equal to the increase in GDP. The simplest means of implementing this monetary demand model is the rule of setting the discount rate at 7.5 + GDP deflator - unemployment rate.
From this perspective, partpoker the root cause of inflation is an increase in money supply over demand for money, and therefore "inflation is always and everywhere a monetary phenomenon", as Friedman puts it. This means that controlling inflation rests on monetary and fiscal restraint: the government must neither make it too easy to borrow, nor must it borrow excessively partpoker itself. This view focuses las vegas on the importance of controlling central wsop government budget deficits and interest rates, as well as the productivity of the economy, which is, in effect, "cost pull" inflation.
Back to Poker Articles Listing
