"Economic Growth Doesn’t Cause Inflation (The Fed Does)" de Robert Murphy:MORE GOODS = A LOWER DOLLAR PRICE PER GOODAs with most faulty economic doctrines, the claim that economic growth causes price inflation isn’t just wrong, it’s exactly backwards. Let’s go back to basics. The price of something (quoted in dollars) is just the exchange ratio between dollar bills and the good in question.Now what happens when the quantity for sale of a particular good or service increases? .... If the economy cranks out five percent more stuff this year than last year, those items will be more affordable to consumers, not less!Other things equal, the larger the growth in real output, the lower dollar prices will be. Economic growth reduces inflation.
"Economic Growth Doesn’t Cause Inflation (The Fed Does)" de Robert Murphy:MORE GOODS = A LOWER DOLLAR PRICE PER GOODAs with most faulty economic doctrines, the claim that economic growth causes price inflation isn’t just wrong, it’s exactly backwards. Let’s go back to basics. The price of something (quoted in dollars) is just the exchange ratio between dollar bills and the good in question.Now what happens when the quantity for sale of a particular good or service increases? .... If the economy cranks out five percent more stuff this year than last year, those items will be more affordable to consumers, not less!Other things equal, the larger the growth in real output, the lower dollar prices will be. Economic growth reduces inflation.
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"Economic Growth Doesn’t Cause Inflation (The Fed Does)" de Robert Murphy:MORE GOODS = A LOWER DOLLAR PRICE PER GOODAs with most faulty economic doctrines, the claim that economic growth causes price inflation isn’t just wrong, it’s exactly backwards. Let’s go back to basics. The price of something (quoted in dollars) is just the exchange ratio between dollar bills and the good in question.Now what happens when the quantity for sale of a particular good or service increases? .... If the economy cranks out five percent more stuff this year than last year, those items will be more affordable to consumers, not less!Other things equal, the larger the growth in real output, the lower dollar prices will be. Economic growth reduces inflation.
"Economic Growth Doesn’t Cause Inflation (The Fed Does)" de Robert Murphy:MORE GOODS = A LOWER DOLLAR PRICE PER GOODAs with most faulty economic doctrines, the claim that economic growth causes price inflation isn’t just wrong, it’s exactly backwards. Let’s go back to basics. The price of something (quoted in dollars) is just the exchange ratio between dollar bills and the good in question.Now what happens when the quantity for sale of a particular good or service increases? .... If the economy cranks out five percent more stuff this year than last year, those items will be more affordable to consumers, not less!Other things equal, the larger the growth in real output, the lower dollar prices will be. Economic growth reduces inflation.