Re:High Inflation May Already Be Behind Us
by amanaplanacanal on Tuesday June 28, 2022 @09:43AM
(#31907567)
I love the chart which purports to show the correlation between money supply and inflation. Anybody else think it looks totally random? Except that he selected a nine month lag to make the peak line up.
Re:High Inflation May Already Be Behind Us
by scottiebarnes on Tuesday June 28, 2022 @10:16AM
(#31907971)
What's your understanding as to the source of inflation in an economy?
An increase of nominal money in an economy creates competition over the same limited quantity of goods which causes a rise in prices. AKA when money is cheap (low interest), people borrow more, which becomes spending, which leads to increased demand (and usually inflexible supply), etc.
Re:High Inflation May Already Be Behind Us
by coverband on Tuesday June 28, 2022 @01:07PM
(#31910301)
They've literally done that though -- look at all the on-paper profits that have disappeared from the crypto, stock, real estate markets... Look also at the fact that you've already started paying more $ for the same essential products and don't expect them to go below today's levels...
An increase of nominal money in an economy creates competition over the same limited quantity of goods which causes a rise in prices. AKA when money is cheap (low interest), people borrow more, which becomes spending, which leads to increased demand (and usually inflexible supply), etc.