
TRC #654: What Is Inflation? + John von Neumann: The Man From The Future
The Reality Check
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Is There a Relationship Between Money Supply and Price?
The model predicts that increasing the money supply all else being equal, that you have more dollars chasing the same number of goods and so prices rise. But there's only one problem with the model when it comes to making sense out of inflation: None of the figures are actually measurable, let alone predictable. And their relative importance to one another cannot be determined.
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