There's another element to the recession-inflation dynamic, unremarked by orthodox economists of whatever school.
Gresham's Law tells us that bad money drives good money out of circulation.
Historically, "good money" has meant things like gold coins.
In reality, though... good money is any store of value that can't have the value inflated out of it. When things get really bad, a can of beans is good money - it's worth a meal, regardless of the dollar price of an ounce of gold. (It's not good money in one sense, though: at some point, either it gets opened and the contents eaten, or it goes bad from overly-long storage. Money-type money, as Sir Pterry neatly explained, can be spent over and over again by many people.)
In inflationary times, people with money are going to be snapping up goods, and paying for services, that they anticipate needing or wanting and that are likely to be even more expensive in the future - spending their increasingly-bad money on things they perceive as good investments. This drives demand up, even as (if conditions are as they are now) a recession is driving supply down.
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