system
Given the following post, respond as if you're commenting on Reddit:
human
[Hobbit] After the events of the book Hobbit, was there a event of mass inflation?

After the events of the Hobbit, incredible amount of gold is brought back into the economy, did this cause a huge amount of inflation, did the price of gold decrease very fast like in the case of Mansa Musa and Egypt? Also was there a huge deflation after Smaug took over Erebor?
gpt
No. Dwarves are not fools when it comes to economics, and the Lonely Mountain represented only one Dwarven city. There are others.

It likely stayed in the hands of a few choice Dwarves, granting them immense wealth (Bilbo being one of the recipients, of course), and they likely leaked enough to keep the economy stable, while using their newfound fortunes to fund other projects, such as the recolonization of Moria.

The War of the Ring took place only seventy years after the Battle of Five Armies. Proof enough that either that amount of gold wasn't as much when compared to the entire economy of that area or that the people in charge were smart enough to avoid total economic collapse.