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by AnimalMuppet
4041 days ago
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No, if the quantity of money stays the same, but the velocity of money increases, that's still inflationary. And if the velocity increases because people know there's inflation, that's a positive feedback loop. But it will eventually fix itself, because there are physical limits to how high the velocity of money can go. Once that's reached, then the velocity-caused inflation stops, and then the velocity no longer becomes necessary, and things start to return to normal. |
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