Money Supply Increase Leads to Higher Inflation Rates, Study Finds
The study looked at how changes in the amount of money in circulation affect inflation in 38 countries with high inflation rates. By analyzing different intervals of money supply changes, the researchers found that the relationship between money supply and inflation is not the same for increases and decreases in money supply. They discovered that as the amount of money in circulation goes up, inflation also increases. This shows that there is an uneven connection between the amount of money available and the level of inflation.