From the belabored “definition of terms” at the trial, flowed the discussions on the huge encashments (ptvnews.ph., July 29). Money supply is the lifeblood of the economy. Economists such as Milton Friedman argued in support of the theory that the money supply is intertwined with all of these variables,” says Investopedia. Upon cash withdrawal, M1 money supply is depleted by that amount, unless the cash was re-deposited by the recipients. In Economics 101, we learned to deflate nominal interest rates with the inflation rate, to determine the real interest rate.