If inflation lowers demand, would that not eventually offset inflation naturally without government intervention?

372 views

If inflation lowers demand, would that not eventually offset inflation naturally without government intervention?

In: 42

15 Answers

Anonymous 0 Comments

Inflation doesn’t lower demand, it’s the opposite. Inflation comes from increased demand due to their being more currency available than their are goods to buy with it.

Such as when people are told not to go to work, but are still paid via of newly created money. Not only did this increase demand, it also lowered the supply due to people not producing as much of the goods and services.

You are viewing 1 out of 15 answers, click here to view all answers.