Reflect on the inflation rate of 13.29% of December 1979 and discuss the very rapid growth in money supply due to the recent expansionary policy.
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Reflect on the inflation rate of 13.29% of December 1979 and discuss the very rapid growth in money supply due to the recent expansionary policy. Will it lead to high inflation or not? What in MV = PY will change? Are the pessimists or optimists more likely to be correct? Why? What will be the rate of inflation for this year 2015, by the time we get to December 31?
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