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Other logical objections to the idea of demand-pull
inflation center on the importance of money. How could prices
rise without a commensurate increase in the quantity of money in private hands?
If such a thing happened, the purchasing power of the quantity of money
would have declined involuntarily, and that would not be consistent with market
equilibrium. The monetarist argue that increases in the quantity of money cause
inflation. Critics of this view point out that the quantity of
money is difficult to define, especially when funds can be transferred
electronically and credit cards can substitute for cash.