Economics, Econometrics and Finance
a year ago

Money drives inflation: Imbalances in markets fuel rising prices.

Oxford University Press eBooks
Money and inflation
Gunnar Bårdsen, Øyvind Eitrheim, Eilev S. Jansen, Ragnar Nymoen

Paper Summary

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Increased money supply leads to inflation, impacting prices and economy.

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Inflation is often caused by imbalances in product and labor markets, rather than just by changes in the money supply. This challenges the idea that inflation is solely a result of too much money in circulation.