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by napoleon_thepig
1594 days ago
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This assumes that the only possible cause of inflation is fiscal deficit monetization. This is just wrong. You could have scenarios where the central bank does not change policy but money supply increases because banks are lending more money and therefore using the discount window more. Also people could expect more inflation in the future, so they try to get rid of cash faster to buy goods. This increase in money velocity will also increase inflation. |
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