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If a crisis create supply problems, for instance, disrupting supply chains, inflation could increase. Inflation is too much spending (not "printing") for too l
by RobertoG 6y ago
If a crisis create supply problems, for instance, disrupting supply chains, inflation could increase.
Inflation is too much spending (not "printing") for too little capacity in the economy. You could get inflation for spending more than the economy can accept (but in normal times modern economies are rarely at full utilization), or, assuming full utilization, by keeping the same spending when what the economy can produce decrease for some reason.
In fact, despise what many people says, the second way is far more common that the first, including Zimbabwe (1).
(1) - http://bilbo.economicoutlook.net/blog/?p=3773 http://bilbo.economicoutlook.net/blog/?p=3773