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Inflation being a monetary phenomenon is the technical definition of inflation. When you mention the 14% number, that is based on market price for basket of go
by craigkilgo 9y ago
Inflation being a monetary phenomenon is the technical definition of inflation. When you mention the 14% number, that is based on market price for basket of goods which is not technically inflation (under the definition used by economists, not the definition used by journalists).
- dmm 9y agoSo if bought inflation-protected securities from the us treasury, they would have paid >300% from 2008 to now? Or does the us treasury use the journalist definition of inflation?
- mcguire 9y agoEconomic definitions are abstractions built for mathematical tractibility while creating formal models.
- colorint 9y agoThe technical definition of inflation is raising prices. It's only a strictly monetary phenomenon if output and velocity are fixed with respect to the money supply. In other words, inflation meaning "more money" is only a technical definition in the kooky world of monetarism.