Source: Cobden Centre
by Dr. Frank Shostak
“In a market economy, a producer exchanges his product for money. He then exchanges the received money for the products of other producers. Alternatively, we can say that an exchange of something for something takes place by means of money. Things are, however, not quite the same once money is generated out of ‘thin air’ because of the expansionary central bank policies. Once money out of ‘thin air’ is employed, it sets in motion an exchange of nothing for something. This amounts to a diversion of resources from wealth generators to the holders of the newly generated money. In the process, wealth generators are left with fewer resources at their disposal, which in turn weakens their ability to grow the economy.” (02/26/26)
https://www.cobdencentre.org/2026/02/what-causes-stagflation/