TSX:AX.PR.E - Post by User
Comment by
Torontojayon Mar 11, 2024 6:57pm
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Post# 35927450
RE:RE:RE:RE:RE:RE:RE:RE:RE:WHY TRUMP MUST WIN.
RE:RE:RE:RE:RE:RE:RE:RE:RE:WHY TRUMP MUST WIN.
Frankie, I'm a monetarist in case you haven't figured out. That means that inflation is caused by too much money chasing few goods. If you can control the amount of money in circulation then you can control the price level independent of interest rates. This is the basic explanation but it is more complicated than that.
https://corporatefinanceinstitute.com/resources/economics/monetarist-theory/#:~:text=The%20monetarist%20theory%2C%20as%20popularized,down%20the%20rate%20of%20inflation.
From 2000 - 2020, the money supply increased by 6% per year but inflation was only 2% per year. To understand why this is so you have to have familiarity with the quantity theory of money. I laid it out in a previous post but I believe it went unnoticed.