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Not all goods, but generalized. Stocks are a fraction of spending. High inflation economies have also seen a surge in pricing in housing, relative to other par
by conanbatt 6y ago
Not all goods, but generalized. Stocks are a fraction of spending.
High inflation economies have also seen a surge in pricing in housing, relative to other parts of the economy.
- 0x008 6y agoBut you said if only a subset of items increases in price it is not inflation by definition?
- conanbatt 6y agoYes. I'm saying assets have had relative changes of value in high inflation economies, where everything is going up. Say a bag of rice is 100, housing is 1000. In a 100% inflation scenario, it goes to 200 and 2000, but when you look at prices it is 200 and 3000. This points to two effects: inflation + relative price changes. It's an informal argument against the notion that there is "asset inflation" because of dollar printing. Economies with high inflation have seen "asset inflation" even with all prices increasing. It points to a typical change in demand.