The Mystery of Inflation (Pocketbook Pain!)
Jimmy Akin's Mysterious World
00:00
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.
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Transcript
Listeners have noticed that when Jimmy Akin mentions how much something cost in the past, he says it's due to "inflation the government has caused." Now he and Dom Bettinelli are going to explain why he says that, what inflation is, why it happens, and why Jimmy says the government is responsible.
