Lately, among the generally gloomy reporting on the state of the economy, we have observed some positive signs emanating from market developments and confidence indicators suggesting that the economy is stabilising.
And if you took any economics in school you learned: more money chasing the same number of goods – voilà, inflation. Indeed, I think I’m pretty safe in saying that after four years in economics grad school, I’ve uttered this phrase – more money chasing the same number of goods creates inflation – more often than anyone else in this room.