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

Question

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

In: 42

Answer 1

People buying less in response to higher prices isn’t a decease in demand. It’s a shift along the demand curve, like so

https://qph.cf2.quoracdn.net/main-qimg-4c7fea30b91c1304b61ef22f90981e39

You’re confusing quantity demanded, which is the amount of stuff people will buy at the current market price, with demand, which is a function describing the amount of stuff people will buy at every price.

Demand has only decreased if people become less willing to purchase a good at the same price.