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Money supply rise and fall

Money supply rise and fall. Davione Cotton. stagflation. In the 1970’s the inflation-unemployment trade off disappeared for a few years. Instead of moving in opposite directions, inflation and unemployment began to moving the same direction .

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Money supply rise and fall

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  1. Money supply rise and fall Davione Cotton

  2. stagflation • In the 1970’s the inflation-unemployment trade off disappeared for a few years. • Instead of moving in opposite directions, inflation and unemployment began to moving the same direction . • The economy began to experience high inflation and high unemployment at the same time or what you would call stagflation.

  3. Stagflation

  4. Money supply rise • Money supply- the total amount (bills, coins, loans, credit, and other liquid instruments) in a particular economy. • An increase in the money supply causes a drop in the equilibrium interest rate because the money supply curve shifts creating a new equilibrium. The money demand curve does not shift. • A decreased money supply will have the opposite effect.

  5. Money supply in depth • This chart below shows the rise and increase of money supply

  6. The fall of money supply

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