"A few thoughts""Weimer showed that you can't have inflation if...

  1. 5,236 Posts.
    lightbulb Created with Sketch. 35
    "A few thoughts"

    "Weimer showed that you can't have inflation if you don't expand the currency supply."

    Yes you can.

    A supply shock is an event that suddenly increases or decreases the supply of a commodity or service, or of commodities and services in general. This sudden change affects the equilibrium price of the good or service or the economy's general price level.In the short run, an economy-wide negative supply shock will shift the aggregate supply curve leftward, decreasing the output and increasing the price level.[1] For example, the imposition of an embargo on trade in oil would cause an adverse supply shock, since oil is a key factor of production for a wide variety of goods. A supply shock can cause stagflation due to a combination of rising prices and falling output.

    https://hotcopper.com.au/data/attachments/3969/3969957-10759461215304d02614ce22fcb21869.jpg

    https://en.wikipedia.org/wiki/Supply_shock

    "The current inflation in the USA reveals that the extra cash is chasing too few goods."

    Apparently a possible doubtful statement for the reason stated above and the fact as stated in your post " bottle necks caused by covid."


 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.