3 ms·
It's not just the increase of the money supply. It's the increase of the money supply faster than the "stuff" of the economy increases. Globalization didn't j
by AnimalMuppet 3y ago
It's not just the increase of the money supply. It's the increase of the money supply faster than the "stuff" of the economy increases.
Globalization didn't just make stuff cheaper. Supply and demand says that the price would not go down (regardless of the cost of manufacturing) if there wasn't more of it than there had been. Globalization increased the "stuff" part of the economy.
- JackFr 3y ago> It's not just the increase of the money supply. It's the increase of the money supply faster than the "stuff" of the economy increases. This. Inflation always is too much money chasing too few goods. Secular shortages give you too few goods. Loose monetary policy (or fiscal policy) give you too much money. (A tight monetary policy can immunize effects of a loose fiscal policy - if there is institutional will.)