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They aren't things you can add up, one is a cause of the other. Monetary inflation is an increase in the money supply which happens when more money is borrowed
by dskloet 4y ago
They aren't things you can add up, one is a cause of the other.
Monetary inflation is an increase in the money supply which happens when more money is borrowed, usually as a result of lower interest rates. Price inflation is in increase in the prices of good and services.
Monetary inflation causes price inflation and other things can also cause price inflation. But it's meaningless to add up monetary inflation and price inflation.
- kcatskcolbdi 4y agoI think in this scenario you would be adding together the price inflation caused by monetary inflation with the price inflation caused by other things. If all sides are measurable you could then start identifying which side is driving price inflation primarily.