Inflation Equation
wanted to ask, has anyone heard of this new "Inflation Equation" ?
In the past, the roots of inflation have stemned from too much money chasing too few goods. The mathematical equation that economists have used is the Equation of Exchange - prices are directly linked to the amount of money in circulation and the speed at which we spend it. Basically, the faster we print money than the economy grows - the value of the dollar falls. So apparently there is this "new model" that looks at inflation...and I'm wondering if anyone has caught wind of it?
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