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Infographic by Matt McOsker
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http://bilbo.economicoutlook.net/blog/?p=381
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http://bilbo.economicoutlook.net/blog/?p=381#
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Vertical and Horizontal components of the Money Supply
http://e1.newcastle.edu.au/coffee/education/education_view.cfm?ID=2
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http://www.slideshare.net/MitchGreen/money-is-no-object
When the government runs a deficit, it creates the base money that banks need to operate and people need to save.
Conversely, the government destroys base money by running a surplus.
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