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Old 07-16-2007, 01:42 PM
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exni exni is offline
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Libros,

Inflation is a monetary phenomenum, only-- which means only institution dealing with currency issuance are involved in inflation : CBs through what is called fractional reserves....
Speculators are just, as their names say, speculators : they try and make a profit out of currency moves, through technicals or fundamentals signals--
thus the US$$ is being inflated and thus debased according to CBs money issuance which inflate the US$$ base and thus triggers more money "chasing" fewer goods = higher good and service prices!
Speculators and banks (markat makers, instit. traders) influence currency value, not currency base, a money is just the reflection of a country's foreign policy and economic situation....hope i was clear enough...

cheers
exni
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