Too much of a good thing
HOW LONG WILL THE current inflation upsurge last? Is it “transitory”, as leading central banks tell us, or will it prove persistent? Indeed, what exactly does the word “transitory” mean? Is transitoriness to be measured in months, quarters or years? According to the monetary theory of the determination of national income and the price level, a simple reply is available.
Inflation is caused by excessive growth of the quantity of money. Given that truth, the return of worryingly high inflation is not a surprise and forecasting the duration of
