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@1muflon1 In that case I'm using the wrong word. Instead of trying to find a new one or correct my use of words, I can explain that I am assuming that an increase in monetary supply always causes a loss of currency-value and I would like to compute a measure of this loss from only the change in monetary supply. Has any book ever done this? I would like to see how they do it and what can be learned about it. Thank you for your attention.
@Giskard, let me elaborate on why it doesn't make sense to me. Instead of saying "it doesn't make sense to me", I should've said it's not the only information I would like to see. I would like to see a direct computation from the phenomenon of inflation itself, not of its effect. I think of prices as an effect of inflation, not as inflation per se. I would like to do a calculation that updates the value of an amount (say $25 million) merely based on the monetary supply.
@Giskard, thanks for your request for clarification. I didn't expect that you guys would think of price indices first. I'm very inexperienced here. My thinking is that there should be an estimation of the value of the money that's not taken by prices on the market. I would like a price estimation merely out of the monetary supply. Though this might be unreasonable, I would like to know a best-effort method that could be done. I'm willing to read an entire book, so feel free to recommend.
Right on. I didn't see the shock was being referenced. The references have been very nice. Thank you! (For the record, the simplified model seems to be given in chapter 8 of Blanchard et al. and further discussed in chapter 10.)
The question is requesting not a profound understanding of the process, but only the process itself. If Griffin doesn't describe it properly, I would consider an excellent answer the mere description of this first step of the process that Griffin tried to describe. I'm updating the question with this request, in case any of you would like to describe. I'll accept as an answer.
