Fantastic article Carl. May I request a follow up article? The effect of fiscal policy appears to have (in part) increased highstreet goods prices by function of subsidising demand. Whereas aggressive monetary policy hasn't really driven up prices above GDP since it began 15 years ago.
"Why should money not be subject to the laws of supply and demand? An increasing supply with simultaneously unchanged or falling demand leads to falling purchasing power."
How do interest rates work in this? If there's more money printed and less demand, but you lower the interest rates, wouldn't that make more demand? Therefore making the printed money, which was temporarily worth less, suddenly worth the same as before it was printed? #noobQuestion
Excellent explainer. Thanks!
I'm glad you liked the article. Thank you for the feedback.
Fantastic article Carl. May I request a follow up article? The effect of fiscal policy appears to have (in part) increased highstreet goods prices by function of subsidising demand. Whereas aggressive monetary policy hasn't really driven up prices above GDP since it began 15 years ago.
"Why should money not be subject to the laws of supply and demand? An increasing supply with simultaneously unchanged or falling demand leads to falling purchasing power."
How do interest rates work in this? If there's more money printed and less demand, but you lower the interest rates, wouldn't that make more demand? Therefore making the printed money, which was temporarily worth less, suddenly worth the same as before it was printed? #noobQuestion