4 ms·
"if everyone in the bottom 25% of wealth got cut a check that doubled their wealth, inflation would not double" What makes you say inflation wouldn't double? I
by svggrfgovgf 4y ago
"if everyone in the bottom 25% of wealth got cut a check that doubled their wealth, inflation would not double"
What makes you say inflation wouldn't double? It's not clear to me that there's a linear relation between money supply/money velocity and inflation. In addition, I think there's a large psychological component to inflation: people spending money sooner than they would otherwise, i.e., quick buy it now before prices go up more; and, demanding increases in wages to match the expected increases in prices.