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I had a similar thought. Like when Spain imported so much silver from the Americas and prices went up. If supply of goods and services stays stable while money
by DoreenMichele 5y ago
I had a similar thought. Like when Spain imported so much silver from the Americas and prices went up.
If supply of goods and services stays stable while money supply increases, the result is price increases. I don't know why this seems so hard for some people to understand.
- WalterBright 5y agoPeople don't understand because they don't want to understand. Biden is just the latest President in a long line since Wilson who doesn't want to admit what causes inflation, because that would mean their spending policies are to blame. It's better to blame everything else.
- notch656a 5y agoSame story everywhere. Fixing inflation is a long and painful process; more so the worse inflation already is. There's no way inflation can be unwound in one election cycle without popping asset prices. No politician is gonna want to unwind this in a timely manner because it will mean their certain downfall (and by the time we see the payoff, in several years, people will have already forgotten the fiscally responsible steps taken by the politicians which initially looked painful).
- zamadatix 5y agoI think that's obvious as well but only because you specified "goods and services stays stable" whereas the parent comment specified they were irrelevant. There is more than one cause of inflation, it has to do with the ratio between the quantity of goods/services and the quantity of money not just the value of one or the other. Lately I think the majority has been due to the money supply changing but that doesn't make all of the other factors false causes that didn't contribute.
- deleted 5y ago[deleted]
- WalterBright 5y agoThe US had inflation after the California and Yukon gold rushes flooded the country with gold.