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A comment on How Depressions Work. Parent comment

Re:How Depressions Work by dominik on Wednesday February 04, 2009 @04:37PM (#466557)
Wait a second, isn't inflation = expansion of the money supply, i.e. monetary inflation? Price inflation comes later as a direct consequence of monetary inflation, as effects propagate through the economy.

Also, how could money "be withdrawn quickly enough"? Who would withdraw it and how?

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Re:How Depressions Work by cchooper on Wednesday February 04, 2009 @04:59PM (#466601)
Inflation is defined as a persistent rise in general prices. It used to mean an increase in the money supply, but that usage is archaic in most economic circles.

The money would be withdrawn in the way that central banks usually withdraw money in their day-to-day operations: by selling bonds or allowing them to mature.

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