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[-] intensely_human@lemm.ee 9 points 1 year ago

This can mainly be caused by two things:

You forgot expansion of the money supply.

[-] ungoogleable@lemmy.ml 5 points 1 year ago

Increase in the money supply does not in itself cause prices to go up. There's an indirect mechanicism but it's not automatic.

[-] agarorn@feddit.de -4 points 1 year ago

Tell me: if the Fed prints a one quadrillion dollar bill but looks it into a safe so that nobody can ever use it. How much inflation do we get?

[-] planish@sh.itjust.works 9 points 1 year ago

How much does the money supply go up by? It can't really count as supplied if it's locked in a safe.

[-] agarorn@feddit.de 2 points 1 year ago

Aha. So the sheer amount of money is not important?

Just, as if the circulation speed is the crucial point. Damn. Good for you for noticing.

this post was submitted on 22 Jul 2023

449 points (96.7% liked)

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