3 ms·
If you want specific information on the exact phenomenon you’re describing, read up on the “quantity theory of money.” While academically, it is not a precise
by andrewmcwatters 5y ago
If you want specific information on the exact phenomenon you’re describing, read up on the “quantity theory of money.”
While academically, it is not a precise concept of what happens in practice, as there are multiple factors at play, printing money nonetheless does have this effect.
Organizations’ ability to increase prices as a result of inflated money supply is governed by competitive forces. So, it’s not as simple as seeing money supply increase 40% and thusly increasing your prices, but there is some truth to it.