Question
In chapter three of the video series, it says that the inflation rate starts to accelerate quickly outside of the stock market when John Law
In chapter three of the video series, it says that the inflation rate starts to accelerate quickly outside of the stock market when John Law was at his peak. In September 1720, inflation prices were double what they had been two years previous and most of the change had happened within that year. Any inflation increase is caused by a large amount of demand in the market, in our case, it was the volume of John Laws notes that caused the inflation rates to rise. At this time people became to anticipate a depreciation of the banknotes issued by law and began to cash in and eventually gold and silver began to run out causing chaos. Inflation rates change based on whats happening in the market. When issues arise from the market, it's more than likely there will be an impact on inflation.
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