Continuous increase in money supply leads to long-term inflation, impacting economic growth.
The article explores how the amount of money in circulation affects inflation and economic growth. By studying data from Vietnam and China, researchers found that increasing the money supply over time leads to inflation in the long run. However, in the short term, this increase doesn't always cause immediate inflation. The connection between money supply growth and inflation in these countries is very strong, at 99.1%. This shows that managing the money supply is crucial for controlling inflation levels and boosting economic growth.