Growth in average daily volume is attributed to changesin fundamental supplyanddemand factors, improvement in economic recovery as well as increased geopolitical uncertainty.
They are making a crucial mistake in confusing price changes resulting from fluctuations in supply-and-demand and productivity with price changes that come about from a debasing of the currency.
Because the inverse of supplyand or demand not changing very much when prices change is that prices change a lot in response to only small changesinsupplyand or demand.
Like many of his brethren, Bernanke confuses price changes that result from supply-and-demand factors in a free market with those that result from debasing the currency.
Broadly, instead of using simple supplyanddemand, it explains changesin the demand for one asset (a small silver coin, say) relative to another (a large coin) in terms of changesin the rate of return that the holder of the assets can expect from each.
This should bring the sorts of benefits that the Internet delivers everywhere, tightening up the supply chain, making Matsushita more responsive to changesindemandand allowing it to carry less stock.
If food demand or supply has a very low elasticity with respect to price in the short term then when we have only a minor change insupplyand or demand then we will see large changesin food prices.