2 ms·

This seems reasonable, lots of new money (currency) leads to inflation. As far as I understand this is how it works; this seems to be as basic as suply and dema

by bsedlm 5y ago

This seems reasonable, lots of new money (currency) leads to inflation. As far as I understand this is how it works; this seems to be as basic as suply and demand based pricing. If this is not the case, the reasoning is counterintuitive.

tonyedgecombe 5y ago
>lots of new money (currency) leads to inflation I thought that in 2008 but we had a decade of low inflation.
- padobson 5y ago
  That was also a decade of explosive automation and globalization. There was much more cash floating around, but far more goods and services were produced than ever before too, thus the balancing of prices. If they hadn't printed all that money, a lot of prices would have stayed flat - and perhaps a lot more folks would feel much richer right now.
  - tonyedgecombe 5y ago
    >That was also a decade of explosive automation and globalization. Actually globalisation has plateaued over the last decade. https://www.economicshelp.org/wp-content/uploads/2019/03/world-exports-gdp-1970-2020.png.webp https://www.economicshelp.org/wp-content/uploads/2019/03/wor...