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Boundless Economics
Inflation
Defining, Measuring, and Assessing Inflation
Economics Textbooks Boundless Economics Inflation Defining, Measuring, and Assessing Inflation
Economics Textbooks Boundless Economics Inflation
Economics Textbooks Boundless Economics
Economics Textbooks
Economics
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Defining Inflation

Inflation and the Money Supply

Inflation and the Money Supply

While the two variables are not exactly equivalent in the short run, over time the money supply has had a direct relationship to the level of inflation. This is consistent with the quantity theory of money.

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    "M2andInflation."
    http://en.wikipedia.org/wiki/File:M2andInflation.png Wikipedia CC BY-SA.

Related Terms

  • money supply
  • velocity of money
  • inflation
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