Monetarists insist that economies experience inflation when money supply growth persistently exceeds output growth.

A new master plan for growth would not be about printing money.

China s intensive economic monetization is a key factor driving its money supply growth.

Two benefits of electronic money stand out, and will likely contribute to its growth.

Monetarists insist that economies experience inflation when money supply growth persistently exceeds output growth. That has not happened yet, so inflation has been postponed.

After all, by allowing people to spend more than they have, borrowed money can fuel growth.

And it is the real interest rate not the money rate that counts for economic growth.

Traditionally, greater amounts of Fed bond buying have led to faster growth of this money stock.

Reserves are costly, for the money could have been spent on development projects that would enhance growth.

Europe cannot afford to continue throwing money at the problem and praying that growth and time will bring salvation.

To get more people to borrow more money, credit standards were lowered, fueling growth in so called subprime mortgages.

Disappointing first quarter growth data have already led foreign investors to have second thoughts about keeping money in China.

Chinese growth has been stellar, but many investors find it difficult to put their money directly in the economy.

And, in a world where the G 7 no longer drives global growth, printing money is playing with fire.

Consequently, maintaining high GDP growth rates requires an ever increasing volume of credit and a continuously growing money supply.

In past decades, large expansions of bank reserves caused lending surges that increased the money supply and fueled inflationary spending growth.

Investment is high, but further investment growth risks misallocating money, so reductions in China s trade imbalance may be hard to achieve.

The first three elements of the American formula for growth cost money, and that money is included in the discretionary non defense part of the federal budget now targeted by the debt ceiling legislation.

Moreover, money spent on the Iraq war does not stimulate the economy today as much as money spent at home on roads, hospitals, or schools, and it doesn t contribute as much to long term growth.

Stable economic policy and rapid growth, in turn, enabled Blair s government to pour extra money into education and the National Health Service.

Given the high rate of growth in China s money supply, there could be considerable pressures for the yuan to actually depreciate, because a rate of monetary growth that exceeds the growth rate of economic activity tends to cause a currency s exchange rate to fall.

As a result of this chronically rapid growth in broad money, China s M2 GDP ratio has surpassed 180 , the highest in the world.

On the contrary, said the followers of Milton Friedman, it must keep the velocity adjusted rate of growth of the money stock stable.

In the 1960 s, Friedman showed that Keynesian demand management through government spending constantly increased the money supply, accelerating wage and price growth.

Lower interest rates, for example, would free up money so that even countries with tight budget constraints could spend more on growth enhancing investments.

China s remarkable growth has been financed recently by a rapid expansion of money and bank credit that is producing an increasingly unsustainable investment boom.

Bad Money, Good Money

If a discrete exchange rate appreciation is to be sustained, it must reflect expected monetary policies tight money and deflation in the appreciated country, and easy money with inflation in the depreciated country. But domestic money growth in China s immature bank based capital market is high and unpredictable, while many interest rates remain officially pegged.

But if a new stimulus is well designed, with much of the money spent on assets, the fiscal position and future growth can actually be made stronger.

The link between Fed bond purchases and the subsequent growth of the money stock changed after 2008, because the Fed began to pay interest on excess reserves.

Slow money growth and dollarization of deposits have hampered the ability of commercial banks to finance the government, leaving more of the burden to the central bank.

It is not your money, or the Government's money, or the Prime Minister's money.

After all, foreign investors are putting their money in the country because they expect to be able to take even more money out in the future when this occurs, growth tends to slow, if not collapse, as happened in Spain, Portugal, Greece, and Ireland.

Corruption was rife, but not just the covert type public money was openly used to support many businesses under flimsy pretexts like fostering economic growth and creating employment.

Generously interpreted, past loans reflected naïve optimism that with a bit of seed money, politically and economically backward countries would generate majestic growth and effortlessly repay their loans.

Favorable external conditions the effect of China s strong growth on higher commodity prices and easy money from yield hungry advanced economy investors led to a partly artificial boom.

It makes sense for companies to move to where dollar sales are booming, and for asset managers to put money where GDP growth measured in dollars is fastest.

In de regulating financial markets worldwide, the Thatcher Reagan revolution brought about the corruption of money, without improving on the previous growth of wealth except for the very wealthy.

But rapid growth in foreign exchange reserves means an increase in the domestic money supply, because the PBC issues RMB6.64 (down 3 since June) for every dollar it receives.

For all of our lives, my generation has defined success in terms of rising GDP growth more money in more pockets, more resources for public programs, and more jobs.

In Russia, power is money and money is power.

Usury (making money from money) was an offense against God.

After all, by allowing people to spend more than they have, borrowed money can fuel growth. But today, Africa s pay as you go practices are a powerful defense against financial contagion.

The revamped growth compact would more effectively allocate European resources and increase the flexibility of permanent transfers from rich to poor countries provided that the money is used for productive investment.

In other words, the strategic government intervention needed to ensure macroeconomic stability was not only straightforward, but also minimal the authorities need only manage a steady rate of money supply growth.