Monetary Base Nearly Doubles

From the Economic Way of Thinking blog:

A number of bloggers have reported recently that the Fed has nearly doubled the monetary base from roughly $826,000 million in March 2008 to $1,534,000 as of March 12, 2009.  (See the data here.)  A desperate attempt to increase the nation’s money supply which will lead to price inflation (and mis-direction of capital goods once again) in the future.

Although frequently used to describe rising prices as is mentioned here, in fact inflation is an increase in the money supply.  So in other words, the Fed has caused a ridiculous amount of inflation over the last year with its fiat money, yet Fed Chairman Bernanke nonetheless claims inflation is low.

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