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Printing money causing inflation has got to be one of the simplest things in economics to understand. Increase supply of thing, thing becomes worth less. And wh
by parineum 4y ago
Printing money causing inflation has got to be one of the simplest things in economics to understand. Increase supply of thing, thing becomes worth less. And what's your source on Monetarism being debunked, the people printing currency?
It's pretty strange how, when all the money was being printed, it wasn't that hard to find a plethora of economists warning that it would cause inflation (due to Monetarism principles) and then, now that inflation is rampant, that's not seen as evidence to the theory. Furthermore, change the interest rates to curb inflation is exactly in-line with that theory because higher interest rates cause people to take their inflated currency out of circulation and into savings.
- matwood 4y ago> Increase supply of thing, thing becomes worth less. So as the supply chain continues to improve, prices should come down? Inflation is too much money, chasing too few goods. It's the push/pull between money supply and goods in the market that drives inflation. Money can't be talked about in a vacuum.
- argentinian 4y ago> So as the supply chain continues to improve, prices should come down? That's very often the case.
- em500 4y ago> Printing money causing inflation has got to be one of the simplest things in economics to understand. Increase supply of thing, thing becomes worth less. One more easy things in economics to understand is that your second sentence is only true if demand is assumed to be constant.