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CrabCake
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Posts: 19,263
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« on: June 08, 2022, 07:25:14 AM » |
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When the concept of inflation was first explained to me, it was through the example of printing more money causing the notes to become less valuable in themselves - so it is entirely linked with money supply. But i also am aware that inflation is also linked with oil and grain prices, and other factors that decrease the purchasing power of each pounds sterling, despite this being incidental to the money supply. In fact, ever since I've been aware of the Bank of England, it has almost consistently been printing out huge amounts of monetary stimulus with very little effect on inflation, and it has only been external factors relating to an increased cost of goods and services that have triggered inflation. So is the initial idea of inflation being around printing money a red herring?
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