I am no economist either.
As I understand inflation is the reduction in purchasing power towards a basket of household goods and services.
So it’s not only ask and demand but many other factors like energy price rising and all the things that get into the cost of a product or service.
Inflation in the sense of growth is the more money it needs to have a transit of the value of goods the more goods are produced of value and sold so the net revenue for credits should be positiv and that over time is growth. Or otherwise said we have more stuff at the end of the day … jehaa
Edit:// the credit by the bank is the money supply in that case.
So it’s not only ask and demand but many other factors like energy price rising and all the things that get into the cost of a product or service.
Inflation in the sense of growth is the more money it needs to have a transit of the value of goods the more goods are produced of value and sold so the net revenue for credits should be positiv and that over time is growth. Or otherwise said we have more stuff at the end of the day … jehaa
Edit:// the credit by the bank is the money supply in that case.
In my opinion that model sucks
But please don’t believe me I am no expert
https://en.m.wikipedia.org/wiki/Consumer_price_index