This is an interesting vlog on some simple monetary economics ideas, the classical definition of inflation is discussed in terms of ‘money supply’ but then it turns towards some of the other issues such ‘what is money supply?’ there is no set agreement on which count should generally be used (in USD it used to be M3 which is no longer published). That has an interesting implication in the fact that banks are ‘hoarding’ money, the fact is that they are holding huge amounts of capital which isn’t monetized, but it can be and that means a return to ‘credit flowing’ could actually cause some serious inflation as the money flows into the real economy minus any increase in real purchasing power.
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