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Inflation happens when money supply increases more than the value of the goods that you can purchase with that money supply. It isn't about needs, but things th
by seanmcdirmid 2y ago
Inflation happens when money supply increases more than the value of the goods that you can purchase with that money supply. It isn't about needs, but things that can be bought, especially those with limited supplies like housing.
- paulryanrogers 2y agoSo if money supply stayed the same but a crisis reduced the supply of goods, while demand increased, then those raising prices are ... not inflation?
- seanmcdirmid 2y agoSay Price = Money supply / value of goods If price goes up then inflation, if price goes down then deflation. If value of good goes down and money supply stays the same, inflation.