- My Forums
- Tiger Rant
- LSU Score Board
- LSU Recruiting
- SEC Rant
- SEC Score Board
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: What actually causes inflation to slow down and stop?
Posted on 10/11/24 at 6:27 pm to baybeefeetz
Posted on 10/11/24 at 6:27 pm to baybeefeetz
The government pulling money out of circulation will slow down inflation.
Posted on 10/11/24 at 6:39 pm to baybeefeetz
Supply and Demand.
When Demand decreases, sales decrease, thus causing retail prices to drop to induce more sales. When Demand increases, supply can't keep up, and prices increase.
When Demand decreases, sales decrease, thus causing retail prices to drop to induce more sales. When Demand increases, supply can't keep up, and prices increase.
Posted on 10/11/24 at 7:46 pm to 91TIGER
quote:
The so called "inflation reduction act" was nothing more than printing more money on New Green Deal nonsense. Oh, and it was just government spending to buy votes.
Now consider that +/- 82% of new jobs created were government positions that are 100% subsidized by the American Taxpayer, and the decrease in the power of a dollar goes even more down the swirly bowl.
Posted on 10/11/24 at 8:10 pm to baybeefeetz
When people run out of money and quit buying stuff, the prices will stop rising and eventually drop.
Posted on 10/11/24 at 8:56 pm to baybeefeetz
Production equaling or exceeding demand. If there is a surplus of commodities then companies have to compete for scarce dollars by lowering prices. Then they cut back on production to try to boost prices or try to build a better product.
Posted on 10/12/24 at 9:26 am to baybeefeetz
quote:
inflation happens when the money supply expands. Prices can’t go up forever if the money supply isn’t still going up, so then prices just stay where they are. Is this not true?
Sort of. Inflation is a function of too much money in an economy chasing too few goods and services. We all tend to focus on the money supply in that aspect, meaning that the more money in an economy chasing a static number of goods and services, the more inflation we see.
As the old saying goes, it takes two to tango. In this scenario, the other tango-er is the amount of goods and services available. Make no mistake, money supply leads this dance but if money supply remains static while the supply of goods and services saw steady increases or decreases, that would be expressed through deflation/inflation (respectively) as well.
All that said, to get to your core question; if the money supply remains static then inflation can go up if the amount of goods and services decrease.
Popular
Back to top

0







