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>Inflation is neutral as it raises all prices equally. This is not true if the inflation is a result of currency creation, as in that case the inflation first
by logicchains 6y ago
>Inflation is neutral as it raises all prices equally.
This is not true if the inflation is a result of currency creation, as in that case the inflation first affects the things purchased by those receiving the newly created money.
- neatze 6y agoInflation by definition is a result of supply/demand disequilibrium, in another words to much many is chasing to few goods. I agree that root problem is optimization, this is evident in natural living systems too. Furthermore, in general world is growing, there always will be error between actual world growth and expected one.