I would predict that such inflation would be short lived. On a basic income, the majority of money would be spent on mostly basic products, with the occasional, but rare luxury. This would suggest a lot more dollars chasing few goods, but not the type of goods where the marginal cost of production is high. Any initial inflation would therefore be eroded by increased commoditification of basic products.
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I would predict that such inflation would be short lived. On a basic income, the majority of money would be spent on mostly basic products, with the occasional, but rare luxury. This would suggest a lot more dollars chasing few goods, but not the type of goods where the marginal cost of production is high. Any initial inflation would therefore be eroded by increased commoditification of basic products.