• @[email protected]
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    fedilink
    14 months ago

    The currency doesn’t affect inflation? If every day the number of usd doubles, would that increase inflation, decrease it, or keep the value the same? That is extreme, but it should really clear things up for you.

    You are right that if there are less oranges and the same demand, then oranges will go up in price. Now apply that same logic to the currency itself. If there is more of a currency and not more demand for it, should the value of that currency go up or down?

    This really isn’t complicated economics, I guarantee that if you crack open any intro to economics textbook, you will have your current understanding completely annihilated.