4 ms·
The first definition in this post is wrong -- Increasing the money supply will not result in higher prices if the real economy is growing alongside it (i.e., th
by jljljl 5y ago
The first definition in this post is wrong -- Increasing the money supply will not result in higher prices if the real economy is growing alongside it (i.e., the ability to produce real goods and services that people demand).
Holding the money supply stable while output increases would actually result in deflation.