4 ms·
> Inflation can rage while no money is printed because velocity surges. Just as deflation can fester while central banks print as velocity toys with absolute ze
by cheeseomlit 5y ago
> Inflation can rage while no money is printed because velocity surges. Just as deflation can fester while central banks print as velocity toys with absolute zero.
What are some good examples of this? Historically it seems to me like major inflation issues usually coincide with an expanding money supply, not the other way around
- shagmin 5y agoThis is exactly Japan's lost decade - lots of government debt and only deflation - mainly in the 90s. I think the difference is Japan is a a country with all its needs met. People already had enough money to spend on basic needs (unlike post WW1 Germany or Zimbabwe recently) so additional money didn't change that but there was a housing bubble.