The introduction and widespread use of credit cards increases trading efficiency but, by also increasing the velocity of money, it causes inflation, in the absence of monetary intervention.Read their complete paper available for free download here.
Correcting misconceptions about markets, economics, asset prices, derivatives, equities, debt and finance
Thursday, September 3, 2009
Credit Cards Cause Inflation
Posted By Milton Recht
John Geanakoplos and Pradeep Dubey argue in their June 2009, research paper, "CREDIT CARDS AND INFLATION" that the issuance and use of credit cards causes inflation by increasing the velocity of money.
Subscribe to:
Post Comments (Atom)
Good blog along with the excellent quality stuff and I’m sure this will be greatly helpful.authorized user tradelines
ReplyDelete