iiipooniii on Nostr: Price inflation vs Monetary inflation ; Price inflation is like "the balloon "getting ...
Price inflation vs Monetary inflation ;
Price inflation is like "the balloon "getting bigger. When there’s more air (money) pumped into the balloon (economy), it expands, causing prices to rise.
Monetary inflation, on the other hand, is like "the act" of pumping air into the balloon. It’s the increase in the money supply, which can lead to price inflation if not properly managed, just as pumping too much air into a balloon can cause it to burst.
Price inflation is like "the balloon "getting bigger. When there’s more air (money) pumped into the balloon (economy), it expands, causing prices to rise.
Monetary inflation, on the other hand, is like "the act" of pumping air into the balloon. It’s the increase in the money supply, which can lead to price inflation if not properly managed, just as pumping too much air into a balloon can cause it to burst.