Airline Revenue Economics

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Airline Revenue Economics
Some Pleasing Monetarist Arithmetic
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

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Oliver Ranson
Jul 25, 2022
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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, …

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