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Managing in a global economy by john marthinsen babson MBA chapter 18

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Copyright© 2008 South-Western, a part of Cengage Learning.. Copyright© 2008 South-Western, a part of Cengage Learning.. Copyright© 2008 South-Western, a part of Cengage Learning.. Copyri

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Causes of Long-Term Growth and Inflation

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for 515 Years

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Source: Federal Reserve Bank of St Louis, Economic Data—FRED II, http://research.stlouisfed.org/fred2/

(accessed October 10, 2006).

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1959–2006

Source: Federal Reserve Bank of St Louis, Economic Data—FRED II, http://research.stlouisfed.org/fred2/

(accessed October 10, 2006).

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Inflation

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Source: U.S Department of Labor, Bureau of Labor Statistics, Labor Force Statistics from the Current

Population Survey, Consumer Price Index, http://www.bls.gov/data/home.htm (accessed January 30, 2006).

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Source: U.S Department of Labor, Bureau of Labor Statistics, Labor Force Statistics from the Current

Population Survey, Consumer Price Index, http://www.bls.gov/data/home.htm (accessed October 14, 2006).

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Source: U.S Department of Labor, Bureau of Labor Statistics, Labor Force Statistics from the Current

Population Survey, Consumer Price Index, http://www.bls.gov/data/home.htm (accessed October 10, 2006).

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Long-Term (30%) Inflation?

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Inflation?

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Money Growth*

Source: IMF, International Financial Statistics Online, http://ifs.apdi.net/imf/about.asp (accessed June 6, 2006).

*The money supply figures in Exhibit A18-7 come from the IMF’s ‘‘Money’’ and ‘‘Quasi-money’’ statistics.

Money is defined as currency outside depository banks and demand deposits other than those of the central

government Quasi-money is defined as liabilities of financial institutions, comprising time, savings, and

foreign currency deposits of resident sectors other than central government.

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