Ah, I see what you mean.  But yeah, it is still naive to think that the effect is just a simple rescaling in every market.

SimpleStacker

The second one probably comes from thinking of it as more of a rescaling of the price axis, which would leave the curves essentially unchanged, rather than thinking of it as a change in real demand.

That's still naive, of course, because things like existing contracts don't get repriced, so there are inherently differences in responses across goods.

econ

Should Monetarism Make a Comeback? (FT, Chris Giles)

denlillaapan

The second one probably comes from thinking of it as more of a rescaling of the price axis, which would leave the curves essentially unchanged, rather than thinking of it as a change in real demand.

That's still naive, of course, because things like existing contracts don't get repriced, so there are inherently differences in responses across goods.