once inflation is embedded in the economy the velocity of money matters more than the supply, because the sticky price effect causes a spiral. there will be en

once inflation is embedded in the economy the velocity of money matters more than the supply, because the sticky price effect causes a spiral. there will be enough money in that business's account because they will do the obvious thing and increase prices by 13% - after all, their costs are up and their customers are making more money so they can easily absorb the increase. here is a simplified illustration of the phenomenon https://archive.nytimes.com/krugman.blogs.nytimes.com/2008/05/31/embedded-vs-non-embedded-inflation/ https://archive.nytimes.com/krugman.blogs.nytimes.com/2008/0...