<https://forum.objectivismonline.com/index.php?/topic/35413-inflation-gdp-and-m4/#comment-375207>
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"Brightsparkey,\n \n\n\n\tIt is commonly assumed that inflation comes from over-expansion of the money supply.\n \n\n\n\tBut if this was true, it would mean that everyone selling something is measuring exactly\n \n\n\n\thow quickly the money supply is expanding and how much to raise prices.\n \n\n\n\tDoes this sound realistic to you?\n \n\n\n\tA much better measure of inflation is the gradual rise in ground rent.\n \n\n\n\tHigher rents for retailers require higher prices.\n \n\n\n\tBut what causes ground rent to rise?\n \n\n\n\tIncreased economic activity in a given area increases interest in land there.\n \n\n\n\tAs a city's economy grows (more jobs, more amenities) the area becomes more desireable.\n \n\n\n\tInflation does not just keep pace with economic growth.\n \n\n\n\tIt is caused by economic growth.\n \n"
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