The supply demand is for a single item. It doesn’t work in the wider economy because as one good gets more expensive people switch to similar goods that didn’t increase - price increases, q demanded falls, customers swaps to a mirror good or don’t buy at all.
Changes in technology is a supply side, not demand side. On foreign demand im referring to changes in exchange rates that can affect GDP and associated inflation pressures.
You’re getting your models confused.
The supply demand is for a single item. It doesn’t work in the wider economy because as one good gets more expensive people switch to similar goods that didn’t increase - price increases, q demanded falls, customers swaps to a mirror good or don’t buy at all.
Changes in technology is a supply side, not demand side. On foreign demand im referring to changes in exchange rates that can affect GDP and associated inflation pressures.
Exactly, and the single item in this case is the US dollar. Increase the (money) supply and it’s value goes down relative to everything else.
Inflation is a function of the fiat currency it references, not the goods that currency buys.