I'm not sure what theory of inflation you think I've presented, because I haven't presented a complete one -- I've only offered an explanation of how already-high inflation enables corporations to become less price-competitive, which makes inflation more volatile, and you will find the same explanation in mainstream economics and central bank publications. (I did explain why it isn't continuous). It doesn't make any attempt to explain what instigates the inflation to begin with, which could certainly be caused by a spike in deficit spending, or a natural disaster that reduces supply, or a trade embargo, or a war, etc.
Inflation isn't a price increase in one item, but the scenario I presented above does not create a tradeoff between one item and another; it can apply to any and all category of manufactured goods or services where efficiencies of scale apply. Macroeconomists usually assume only a single fungible good anyway (a "widget").
Inflation isn't a price increase in one item, but the scenario I presented above does not create a tradeoff between one item and another; it can apply to any and all category of manufactured goods or services where efficiencies of scale apply. Macroeconomists usually assume only a single fungible good anyway (a "widget").