Inflation continues to be a serious concern for monetary policymakers across the globe. The recent COVID-19 pandemic has driven these concerns into the spotlight once again. This focus on the devastating effects of inflation can’t be ignored as the money supply is at an all-time high. Worst of all, the velocity of this money has decreased, meaning that people aren’t using their funds to stimulate growth but rather saving them for a rainy day.
What is Inflation?