Supply destruction causing inflation seems like another monetary phenomenon.
If inflation is caused by printing more money at a faster rate than the economy grows, then when the economic growth rate is negative then money would need to be destroyed to avoid inflation.
It's not the supply destruction that caused the inflation, it's rate of monetary expansion being greater than the rate of economic growth.
If inflation is caused by printing more money at a faster rate than the economy grows, then when the economic growth rate is negative then money would need to be destroyed to avoid inflation.
It's not the supply destruction that caused the inflation, it's rate of monetary expansion being greater than the rate of economic growth.
(With velocity held constant of course, MV=PQ).