3 ms·
Some prices rise, yes, but if the money supply doesn't increase then it's not possible for all prices to rise because there wouldn't be enough actual money to k
by origin_path 4y ago
Some prices rise, yes, but if the money supply doesn't increase then it's not possible for all prices to rise because there wouldn't be enough actual money to keep paying those prices. A limited quantity of money + some rising prices would force prioritization and marginal businesses with high prices are forced out of the market, as the increased prices would not be viable. At which point those prices stop being counted towards inflation, as they don't exist anymore.