Inflation Equation

[forexcranium]

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?

[forexcranium]

AH...so here it is:

"A new formula emerges from an economic model being developed by the federal reserve bank in of dallas. it reveals something the traditional doctrine misses: inflation varies inversely with growth not only in the domestic economy but also with growth in other countries>

So apparently - the importance of domestic/global growth depends on four factors:

country size
home bias
ease of substitution
production tradeoffs


Gonna keep reading...see what else gives