The core causes of inflation came down to three main factors.
First, when economic stimulus or quantitative easing policies greatly increased the money supply, currency depreciated and prices rose.
Second, when market demand exceeded existing supply, prices were pushed up, triggering inflation.
Third, an imbalanced industrial structure or insufficient total supply raised production costs, such as when labor wages or the prices of production factors increased. This drove up the cost of goods and, in turn, pushed prices higher.
In Zero's view, the five million copper coins needed to pay for this war belonged to the first category.
Issuing such a large amount of currency would severely impact prices. The extreme demand would continually drive up the prices of many necessities, turning ordinary people who did not participate in the war into victims.
The money in their hands would keep depreciating, while their purchasing power continued to fall, ultimately leading to terrible consequences.
But what about reality? Su Mo held a cup of hot tea as he arrived at the observation platform atop the first level of Qinggang Shelter and looked toward distant Hope Town.
Recently, he had taken to standing here and looking out at the scenery. He watched the distant town grow more prosperous by the day, while more and more newcomers wore happy, reassured smiles.
This was not far from what he had expected half a year ago. In fact, it was even somewhat better.
However, after watching for a long time, Su Mo always felt that development was still too slow.
Especially when he thought of Tian Yuan Territory in the future ruins, the current pace seemed almost absurdly slow.
The current Tian Yuan Territory was clearly much stronger than Tian Yuan in the future ruins. Its military strength alone exceeded it by more than tenfold,