The other part of inflation is, of course, the,amount of goods that people produce .
Supply shortages and surpluses are important.
To that end inflation can be defined as the eco-available money divided by the eco-available goods.
As money chasing goods goes up inflation goes up. As the amount of goods go down, inflation goes up.
Conversely, as money, chasing goods goes down, inflation decreases. Similarly, as the amount of goods go up inflation again decreases.
It’s not rocket science.
Sincerely,
Archer Crosley
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