Comment Inflation from Increase in Money Supply (Score 1) 178
falling supply of crops will drive up the price of gold and cause inflation.
This is false as the printing of money out of thin air causes inflation. It would be more accurate to look at the price of food compared to gold or oil or better yet a basket of commodities. The reason these LDC countries get hit with price inflation the hardest is the inflation(currency creation) is done by the first world and the newly created dollars take a while to circulate out to LDCs. Think of the reverse, the people who get this money first benefit from higher then average salaries and company valuations (government contractors, banks, etc.)