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Macro-economics, should we expect high inflation?

If production is down, & money supply is up ....

Didn't find your answer?

Do I have this right?

Inevitably in the present circumstances total production of goods & services in the UK, and globally, will be down.

Governments in the UK, and globally, are borrowing & spending more - so money is being created.

More money chasing fewer goods & services = a jump in inflation rates. Yes?

RM

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By ireallyshouldknowthisbut
26th Mar 2020 09:50

Yes.

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Out of my mind
By runningmate
26th Mar 2020 10:17

I'm thinking that for politicians / governments, giving loads of money to everyone would normally be a simple way to be enormously popular & continually re-elected. So there must be a reason why governments don't routinely do this??
There has to be a macro-economic downside!
RM

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