When the Money Supply grows faster than GDP does it equal INFLATION?

Over a 10 year period (2002 vs 2012) USA quarterly GDP rose from 10.5 trillion to 15.5 trillion (seasonally adjusted figures) or appx 47%.  During that same period the money supply MZM grew appx. 89%.
When money supply grows faster than GDP inflation is usually a certainity.  There are a few caveats to this theory but this should be the next shoe to drop.

 

 

 

 

 

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