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The immediate price of goods isn’t the only measure of inflation. The fact is that the supply of the dollar has exploded. https://www.cnbc.com/2020/12/31/forex-

The immediate price of goods isn’t the only measure of inflation. The fact is that the supply of the dollar has exploded. https://www.cnbc.com/2020/12/31/forex-markets-dollar.html https://www.cnbc.com/2020/12/31/forex-markets-dollar.html

SpicyLemonZest 6y ago
Inflation is by definition an increase in prices. The amount of money in the economy is called the "money supply". Some economists do argue that the money supply is the primary factor in determining inflation, but that's very different than saying that increases in the money supply are inflation, because the need for money in the economy (usually expressed in terms of the "velocity of money") can vary.
- CyberRabbi 6y ago
  Prices of goods have different dynamics than the prices of assets. If you don’t understand how money supply relates to inflation I simply don’t know how to engage with you on this topic.
  - SpicyLemonZest 6y ago
    Respectfully, I'm not sure there's much point in proposing an uncommon heterodox theory if you can't engage with people who have a conventional understanding of the topic.
    - CyberRabbi 6y ago
      There is nothing heterodox about the concept of supply-side inflation
  - brazzy 6y ago
    Consumer price inflation is a different thing than asset price inflation. The point you seem to be missing is that when you only say "inflation", it's by very widely dominant convention assumed to be consumer price inflation.
- KingMachiavelli 6y ago
  > Inflation is by definition an increase in prices. Sure, I think everyone agrees on that but the CPI only measures a vary narrow range of goods and weights them such that it ends up ignoring some very obvious trends. Most of the inflation could simply by accounted for by the drastic rise in stock prices, real estate values, etc. Even though the CPI/Fed doesn't care about those segments with regards to inflation does not mean it is not inflation.
  - harryh 6y ago
    CPI only measures a vary narrow range of goods The basket of goods used to calculate CPI includes thousands of items covering all categories of consumption by US consumers. It includes housing, energy, education, health care, consumer staples, durable goods, etc.
    - fakedang 6y ago
      CPI is such a bullshit measure precisely because of its definition. A lot of items have had their prices go down significantly due to globalization, efficiency in production, Chinese production, regulation or just by going obsolete and inconvenient. At the same time, the measures that matter - Healthcare, education, housing, have all gone up. Not to mention CPI does not account for wage stagnation.
      - harryh 6y ago
        At the same time, the measures that matter - Healthcare, education, housing, have all gone up. I literally listed those three categories in my comment as components in the CPI calculation.
        fakedang 6y ago
        And you listed a lot of other components which pull down the overall CPI drastically, thus averaging out the increases in these categories, making the whole exercise pointless. For instance, consumer goods, or electronic products, or automobiles, or gasoline, or literally n other products that have suffered from lower or stagnant prices.
- ianai 6y ago
  Seems like a weaker dollar was previously called for in response to currency manipulation from foreign countries.

SpicyLemonZest 6y ago

Inflation is by definition an increase in prices. The amount of money in the economy is called the "money supply". Some economists do argue that the money supply is the primary factor in determining inflation, but that's very different than saying that increases in the money supply are inflation, because the need for money in the economy (usually expressed in terms of the "velocity of money") can vary.

CyberRabbi 6y ago
Prices of goods have different dynamics than the prices of assets. If you don’t understand how money supply relates to inflation I simply don’t know how to engage with you on this topic.
- SpicyLemonZest 6y ago
  Respectfully, I'm not sure there's much point in proposing an uncommon heterodox theory if you can't engage with people who have a conventional understanding of the topic.
  - CyberRabbi 6y ago
    There is nothing heterodox about the concept of supply-side inflation
- brazzy 6y ago
  Consumer price inflation is a different thing than asset price inflation. The point you seem to be missing is that when you only say "inflation", it's by very widely dominant convention assumed to be consumer price inflation.
KingMachiavelli 6y ago
> Inflation is by definition an increase in prices. Sure, I think everyone agrees on that but the CPI only measures a vary narrow range of goods and weights them such that it ends up ignoring some very obvious trends. Most of the inflation could simply by accounted for by the drastic rise in stock prices, real estate values, etc. Even though the CPI/Fed doesn't care about those segments with regards to inflation does not mean it is not inflation.
- harryh 6y ago
  CPI only measures a vary narrow range of goods The basket of goods used to calculate CPI includes thousands of items covering all categories of consumption by US consumers. It includes housing, energy, education, health care, consumer staples, durable goods, etc.
  - fakedang 6y ago
    CPI is such a bullshit measure precisely because of its definition. A lot of items have had their prices go down significantly due to globalization, efficiency in production, Chinese production, regulation or just by going obsolete and inconvenient. At the same time, the measures that matter - Healthcare, education, housing, have all gone up. Not to mention CPI does not account for wage stagnation.
    - harryh 6y ago
      At the same time, the measures that matter - Healthcare, education, housing, have all gone up. I literally listed those three categories in my comment as components in the CPI calculation.
      - fakedang 6y ago
        And you listed a lot of other components which pull down the overall CPI drastically, thus averaging out the increases in these categories, making the whole exercise pointless. For instance, consumer goods, or electronic products, or automobiles, or gasoline, or literally n other products that have suffered from lower or stagnant prices.
ianai 6y ago
Seems like a weaker dollar was previously called for in response to currency manipulation from foreign countries.