1. the amount of
money in the country exceeds the amount of thing there is to
buy, that's inflation. When the amount of products in the country exceed the amount of
money there is to
buy things, that's
deflation. Both of them
upset the
economic field.
(ESTO 9, 7203CO5 SO 1) 2. the
fact is that you can't take more out of something than is in it. An activity, by its own
efforts, has to make
money before it can spend it. Governments today are omitting doing that so you have a cheapening of
money that is called inflation.
(ED 459-35 Flag) 3. inflation takes
place in the
presence of a shortage of
goods and a
deflation takes
place in the
presence of an abundance of
goods. That's really all you need to know about
money. If
money won't
buy things it inflates and if
money will
buy too much, it deflates. So if the people have no
facilities to
produce or are being disturbed continuously politically you get an inflating
state of
affairs.
(SH Spec 13, 6403C24) 4. our answer to inflation, which means
money buying less, is to do our jobs
better and make more
money.
(OODs 19 Aug 72) 5. an increase in the volume of
money and
credit relative to available
goods resulting in a substantial and continuing
rise in the
general price level. In other words if there is too much
money and too few
goods you will have inflation. This is the
standard economic definition of the
word. In other words, it's quite beyond all these people to solve their current "
money crisis" with a simple idea of increasing
production in
order to
handle inflation.
(OODs 27 Nov 71)