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.
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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.