I just read an article about the reasons why inflationary pressures persist despite sharply higher interest rates. Nowhere in the article did I see the one and only real reason for inflation: Money (duh!).
I mean, here it is in its simplistic form:
In the entire economy...
- You have one egg and one dollar. The maximum price for the egg is $1.
- You have one egg and two dollars. The maximum price for the egg just went to $2.