3 ms·
Inflation is MV = PQ... you are commenting only on the M which is money supply. You have to factor in the other variables, notably V or the rate of spending. If
by thedaveoflife 8y ago
Inflation is MV = PQ... you are commenting only on the M which is money supply. You have to factor in the other variables, notably V or the rate of spending. If V remains low, then M can increase without significant inflation.
- nostrademons 8y agoV would have to decrease. If V and Q remain constant, then an increase in M results in a linear increase in P.