Note: I originally designed this post as a separate post, but it changed as I continued to write. At one point, I realized that I needed to write the background for the first post of the “Back to Basics” post series, as even in this form there were points left behind that needed to be […]
https://www.themoneymischief.com/money-matters/
In the previous post, we examined the Quantity Theory of Money. We have seen that increases in the rate of money growth lead to high inflation leading to higher speed and lower real money demand. This indicates that when it comes to an increase in the money supply growth rate, in the long run, the […]
https://www.themoneymischief.com/back-to-basics-pt-4-the-role-of-expectations/
In the previous post, we entered the fiat money system. Now we will examine the quantity theory of money. The supply and demand of the fiat currency is different from the commodity money model(silver or gold) we examined earlier. There are two reasons for this: In the fiat money system, the government has unlimited control […]
https://www.themoneymischief.com/back-to-basics-pt-3-the-quantity-theory-of-money/