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Inflation is caused by a greater number of dollars chasing the same number of goods and services. Look at the used car market, or the housing market, or the GP
by GoatInGrey 1y ago
Inflation is caused by a greater number of dollars chasing the same number of goods and services. Look at the used car market, or the housing market, or the GPU market during the crypto craze several years back. It all falls back to basic supply versus demand mechanics. Inflation can be caused by printing, but it can also be caused by redistributing money from location X (Microsoft stock) to location Y (food spending).
- phyzix5761 1y agoBut it would reduce demand somewhere else if you have a fixed money supply. Therefore, the overall inflation rate would stay the same.