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Let me use an example explanation for simplifying.Suppose a nation to produce two kinds of products just for a year:One ton big rice with one set refrigerator, one ton the big rice price is 2000 dollars;One set refrigerator the price is 1000 dollars.And the country's central bank threw in in those early years of currency also exactly 3000 dollars, always supplied to equal gross demand like this, the inflation certainly couldn't have.Even if the commodity price appears structure to soar, for example one ton the big rice rose 2500 dollars from Los Angeles of Anaheim Adjustable 2000 dollars, the inflation also has no to take place.Because is supplied(3000 dollars) by currency to control, one ton the big rice rise 500 dollars, the ... Read more »
Views: 438 | Added by: fashionman | Date: 04.14.2012 | Comments (0)