Airline Revenue Economics

Pricing, Retailing & RM

Some Pleasing Monetarist Arithmetic

Simple monetary economics explains why air fares are so high & suggests how far they will fall next year

Oliver Ranson's avatar
Oliver Ranson
Jul 25, 2022
∙ Paid
Share

The quantity theory of money states that the amount of money circulating in an economy is sufficient to cover all the purchases and investments that are made. Or to put it another way, when more money chases the same or fewer goods and services, prices will rise.

The amount of money actually available is fixed (in the short term) to cash, bank deposits, …

Keep reading with a 7-day free trial

Subscribe to Airline Revenue Economics to keep reading this post and get 7 days of free access to the full post archives.

Already a paid subscriber? Sign in
© 2025 Oliver Ranson
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture