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by AnimalMuppet 1467 days ago
It's the expansion of the money supply faster than the expansion of the real economic output.
1 comments

Money supply * velocity faster than real output.
True. And it occurs to me that there's a positive feedback loop there. When inflation starts, people tend to pull their purchases forward in time, if they can - they buy before the price goes up. That increases the velocity, which is inflationary, even if the money supply does not increase any further.