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How All That Extra Stimulus Money Could Lead to Price Inflation

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Tags InflationMonetary Policy

05/07/2020Thorsten Polleit

More money creation doesn't necessarily mean higher consumer prices. But, if production is falling while consumers use their stimulus checks to buy food and clothing, we could see noticeable price inflation.

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Original Article: "How All That Extra Stimulus Money Could Lead to Price Inflation"

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Author:

Thorsten Polleit

Dr. Thorsten Polleit is Chief Economist of Degussa and Honorary Professor at the University of Bayreuth. He also acts as an investment advisor.

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