Money Money was described as medium of exchange goods and services, which always makes us neglect that money is a product created by human. Keynesian economist said inflation is about the demand and supply curved in aggregate of the economy, which like people spend more when the economy is booming, which all make more money chasing the same amount of goods and services. In the view of Monetarist, inflation is a concept of M(Money)V(Velocity) = P(Price Level)Q(Quantity of Economic Activities). If the price goes up, it could eithe r be caused by more amount of money in the system or higher velocity. To whom didn’t study economy as major in college, it could be hard to understand to concept. To make it easier for everyone, I would say money is a product. Put it in demand and supply curve, on the supply side when more amount of money is existing in the market, money would be less valuable, and because the money is now less valuable than it used to...
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