The supply of goods and services is more important I think than the supply of money, so goods which can be rapidly produced tend to increase in supply when more money is available. Goods in Short supply or controlled supply will rocket in price, housing, gold etc. and recently Russian gas. This last has been rapidly replaced by other sources so inflation has fallen. The other important factor is CONFIDENCE. which unmeasurable, but would you prefer Argentine Pesos or US dollars, both are in massive deficit. To counter lack of confidence Argentina has to pay massive interest.
The supply of goods and services is more important I think than the supply of money, so goods which can be rapidly produced tend to increase in supply when more money is available. Goods in Short supply or controlled supply will rocket in price, housing, gold etc. and recently Russian gas. This last has been rapidly replaced by other sources so inflation has fallen. The other important factor is CONFIDENCE. which unmeasurable, but would you prefer Argentine Pesos or US dollars, both are in massive deficit. To counter lack of confidence Argentina has to pay massive interest.