Inflation: It’s All in Your Head… Until It’s Not
Remember your job is to identify the book and post your answer. You can also simply share any thoughts in the comments.
Today’s Quote/Passage:
People make all sorts of decisions based on their expectations of what year’s price level will be: decisions about how much to demand, in terms of cash to hold on to and prices and wages to charge. An episodic excess supply of money can cause unexpected inflation. But when people look back on the half decade or so and see that there has been an excess supply of money during that time, they will expect inflation in the years ahead.
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