Economics question

[Blade Blade]

In Sassoon's book 100 years of socialism, he mentions
that an influx of eurodollars from the US's balance of
payments deficit caused excess liquidity and hence
inflation. Can someone explain this to me? How would
the eurodollars cause "excess liquidity" and what does
he mean by that and how does the excess liquidity
cause inflation?

__________________________________________________
Do You Yahoo!?
Yahoo! Health - Feel better, live better
http://health.yahoo.com