Not all prices will go up during inflationary times, as evidenced by the falling gas prices. Some will fall if the product’s supply rises faster than the increase in dollar supply, or if demand for the product falls faster than the rising dollar supply. Regardless of how low a price falls, the price would be even lower if the government and banks were not allowed to create new dollars, which devalue the ones we have.
- Fed creates 2 trillion more dollars for distressed banks
- Subway fare in 1986 dollars