[RipSawyer]

There you go again, no you don't buy up gasoline during an oil embargo because most people don't have storage facilities and gasoline is perishable, by the way. What you do during inflation is buy real estate, gold or whatever else you think will hold its value. I know what I am talking about and if you don't understand me, you will if you live long enough. Rising prices or falling prices don't affect the amount of real wealth in the world, they only transfer wealth from some people to other people depending on how they choose to react to changing prices.

[Southack]

"What you do during inflation is buy real estate, gold or whatever else you think will hold its value."

Yes, sometimes that's what you do. And sometimes, that even increases the speed of money (but not always - or even usually).

If inflation increases too severely, however, then people resort to a barter economy (all barter economies are "slow" compared to paper-based currency economies) which slows down the speed of money. Since it isn't convenient to carry around a wheelbarrow full of Duetchmarks for your morning cup of coffee, you either don't go to the coffeeshop (slowing down the speed of money) or else you go find something in your house of appropriate value and then you try to barter for it at the coffeeshop (said negotiations again slowing down the speed of money).

And in such an environment where prices keep going up, you may find that you stop buying some things altogether (just too pricey). You might drive less, for instance, rather than buy more gas. This also slows down the speed of money.