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Inflation is too much demand chasing too little supply. If the money printing simply replaced missing demand, should we expect any inflation?
by cheerlessbog 6y ago
Inflation is too much demand chasing too little supply. If the money printing simply replaced missing demand, should we expect any inflation?
- jackcosgrove 6y agoIf demand stayed constant while supply decreased because fewer people were working, yes I would expect inflation.
- eloff 6y agoI think that's too simplistic. If it were true you could just print your way out of any down turn with no consequences. Crazily enough there is a mainstream view in macroeconomics that you can do just that. I think people aren't stupid though. If suddenly there are more dollars, then a dollar should be worth less. Hence inflation.