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The simplest way to think about this is in terms of supply and demand. The supply of dollars is going up, so the price will go down, unless the demand for doll
by krupan 6y ago
The simplest way to think about this is in terms of supply and demand. The supply of dollars is going up, so the price will go down, unless the demand for dollars also goes up. If people are selling stock, taking out loans, doing other things in order to demand and obtain dollars, then we won't see inflation. Yet.
- rualca 6y ago> If people are selling stock, taking out loans, doing other things in order to demand and obtain dollars, then we won't see inflation. Yet. Isn't it plausible that the dollar supply isn't actually reaching consumer markets, and consequently inflation stagnated because a drop in purchasing power leads to a drop in aggregate demand?
- krupan 6y agoThis comment expounds on what I said pretty well: https://news.ycombinator.com/item?id=25576634 https://news.ycombinator.com/item?id=25576634