anonymous
  • anonymous
I would like to know does anyone know what Monetary Inflation mean?
Finance
jamiebookeater
  • jamiebookeater
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anonymous
  • anonymous
Loss of value of a currency is inflation. if $1 now buys less than $1 a year ago, the $ is affected by inflation. Monetary Inflation would be Inflation primarily attributed to an increase in money supply.
anonymous
  • anonymous
Actually it goes back to the theory put forward by neo-classic school of economics. For gentlemen like Milton Friedman, inflation only stems from increase in money supply and therefore there is no causation link between inflation and increase in average price but only correlation link.
anonymous
  • anonymous
monetary inflation means more money chasing lesser goods/services

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