We literally just witnessed this with COVID shutdown. Im not sure why you think people getting handed money will not increase pricing as that is usually how things work.

[–] Omega_Haxors@lemmy.ml 0 points 1 year ago (1 children)

Not to poopoo your point too much but inflation only happened after covid because a recent war gave justification for greedflation. You can't really argue money is losing value when CEOs are raking in record profits during an economic downturn.

[–] Peaty@sh.itjust.works 2 points 1 year ago

It happened because a large number of people had a pool of unspent money, some/much of which was the stimulus packages, who were competing for similar goods such as housing.