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I love the chart which purports to show the correlation between money supply and inflation. Anybody else think it looks totally random? Except that he selected
by amanaplanacanal 4y ago
I love the chart which purports to show the correlation between money supply and inflation. Anybody else think it looks totally random? Except that he selected a nine month lag to make the peak line up.
- tmn 4y agoThere appears to be correlation to me. Not perfect. But far from random
- scottiebarnes 4y agoWhat's your understanding as to the source of inflation in an economy? An increase of nominal money in an economy creates competition over the same limited quantity of goods which causes a rise in prices. AKA when money is cheap (low interest), people borrow more, which becomes spending, which leads to increased demand (and usually inflexible supply), etc.