
What causes inflation? Economists Radhika Desai & Michael Hudson explain
Geopolitical Economy Report
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What Causes Inflation?
In any healthy capitalist economy, there would be a supply response to rising prices. Energetic intrepid capitalists would invest precisely in those lines of production where there are rising prices. So because they can easily pay, they end up driving the prices up further as they can pay. And so enough people are making money by selling at those prices that they can also keep inflation going.
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