Re:
by pcai on Saturday October 29, 2022 @03:40AM
(#33381901)
once inflation is embedded in the economy the velocity of money matters more than the supply, because the sticky price effect causes a spiral.
there will be enough money in that business's account because they will do the obvious thing and increase prices by 13% - after all, their costs are up and their customers are making more money so they can easily absorb the increase.
there will be enough money in that business's account because they will do the obvious thing and increase prices by 13% - after all, their costs are up and their customers are making more money so they can easily absorb the increase.
here is a simplified illustration of the phenomenon https://archive.nytimes.com/krugman.blogs.nytimes.com/2008/0...