What's the Natural Exchange Rate?

If we have 50 jelly beans on the market and a hundred pennies in circulation, the natural exchange rate would be two cents per jelly bean. If you slash the goods and services that are available, but the money supply remains constant, then the price of the goods and Services goes up. That is inflation. Our simplified economy has experienced a hundred % inflation by doubling the amount of money in circulation without changing anything about the goods andservices that are on the market.