Re: borodog\'s mistaken understanding of M3...don\'t listen to his drive
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... there are circumstances that can exist where the "printing of money by the fed" doesn't devalue the dollar.
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I really don't understand how, all else equal, expanding the money supply doesn't devalue the dollar.
I could understand that you might see a situation where the money supply is expanded but less than the market was expecting and the dollar rallies. Also if another country expands its money supply more than we do then our currency should increase in value relative to theirs.
Again, if you were to control for other factors, shouldn't expanding the money supply always lead to a devaluing of the dollar?
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