现在我们已经看到了通货紧缩不可取的一些原因，我们必须问自己：“通货紧缩可以做些什么？”在列出的四个因素中，最容易控制的因素是第1号“货币供应”。通过增加货币供应量，我们可以使通货膨胀率上升，因此我们可以避免通货紧缩。为了理解这是如何工作的，我们首先需要货币供应的定义。货币供应不仅仅是钱包里的美元钞票和口袋里的硬币。经济学家安娜·施瓦茨（Anna J. Schwartz）将货币供应量定义如下：“美国货币供应量包括货币 – 联邦储备系统和财政部的美元钞票和硬币问题 – 以及公众在商业银行和其他存款机构中持有的各种存款比如储蓄和贷款以及信用合作社。“经济学家在考虑货币供应时使用了三个广泛的衡量标准：“M1，衡量货币作为交换媒介的功能的缩小; M2，一个更广泛的衡量标准，也反映了货币作为价值储存的功能;以及M3，一个仍然更广泛的措施涵盖了许多人认为是货币的近似替代品。“美联储有多种选择可以影响货币供应量，从而提高或降低通货膨胀率。美联储改变通胀率的最常见方式是改变利率。美联储影响利率导致货币供应量发生变化。假设美联储希望降低利率。它可以通过购买政府证券换取金钱来做到这一点。通过在市场上购买证券，这些证券的供应量下降。这导致这些证券的价格上涨，利率下降。证券价格与利率之间的关系在我的文章“股息减税和利率”的第三页解释。当美联储想要降低利率时，它会购买一个证券，并通过这样做向系统注入资金，因为它给债券的持有者以换取这种担保。因此，美联储可以通过购买证券降低利率来增加货币供应量，并通过出售证券来提高利率来减少货币供应量。
Now that we have seen some reasons why deflation is not desirable, we must ask ourselves: “What can deflation do?” Among the four factors listed, the most easily controlled factor is No. 1 “Money Supply”. By increasing the money supply, we can increase the inflation rate so we can avoid deflation. To understand how this works, we first need a definition of money supply. The money supply is not just the dollar bills in the wallet and the coins in the pocket. The economist Anna J. Schwartz defines the money supply as follows: “The US money supply includes money – the Federal Reserve System and the Treasury’s dollar bills and coins – and the public in commercial banks and other deposits Various deposits held in institutions such as savings and loans and credit cooperatives. “Economists use three broad metrics when considering money supply: “M1, a measure of the function of currency as a medium of exchange; M2, a The broader measure also reflects the function of money as a value store; and M3, a still broader measure that covers what many consider to be an approximate substitute for money. “The Fed has multiple options that can influence the money supply, thus Increase or decrease the rate of inflation. The most common way for the Fed to change inflation is to change interest rates. The Fed’s interest rate has caused a change in the money supply. Suppose the Fed wants to lower interest rates. It can do this by buying government securities in exchange for money. By purchasing securities in the market, the supply of these securities has fallen. This has led to an increase in the prices of these securities and a fall in interest rates. The relationship between securities prices and interest rates is explained in the third page of my article “Dividend Tax Cuts and Interest Rates.” When the Fed wants to lower interest rates, it buys a security and, by doing so, injects money into the system because it gives the bond holders in exchange for such a guarantee. Therefore, the Fed can increase the money supply by purchasing securities to lower interest rates, and reduce the money supply by selling securities to raise interest rates.