Re:Chip shortage: Toyota to cut global production by 40%
by devttyeu on Thursday August 19, 2021 @08:43AM
(#28233101)
Kind of both? If I were to come up with a formula, I'd say 'prices = GDP / SupplyOfGoods', where GDP is just 'MoneySupply * MoneyVelocity'.
If supply goes down, prices go up. If money supply grows, prices go up. If money velocity (number of times money changes hands in a given period) goes down, prices go down, etc.
(It's worth noting that in 2020 when money supply exploded, money velocity fell by a lot, which is why GDP fell, and why there wasn't that much inflation)
If supply goes down, prices go up. If money supply grows, prices go up. If money velocity (number of times money changes hands in a given period) goes down, prices go down, etc.
(It's worth noting that in 2020 when money supply exploded, money velocity fell by a lot, which is why GDP fell, and why there wasn't that much inflation)
edit: s/inflation/prices/