3 ms·
That's inaccurate. It's actually caused by an increase in median wages and number of people employed. Wage growth is affected by money supply growth.
by a3voices 11y ago
That's inaccurate. It's actually caused by an increase in median wages and number of people employed. Wage growth is affected by money supply growth.
- MCRed 11y agoInflation is growth in the money supply. It has nothing to do with wages or prices or any of that other stuff. Those are affected by inflation. But inflation, by definition is changes in the money supply. That is the economic definition of inflation. Redefining inflation is a common acting of politicians et. al who want to obscure what they are doing to the economy.
- enraged_camel 11y ago>>That is the economic definition of inflation. No it isn't. From Wikipedia: "In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy." https://en.m.wikipedia.org/wiki/Inflation https://en.m.wikipedia.org/wiki/Inflation