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But you said if only a subset of items increases in price it is not inflation by definition?
by 0x008 6y ago
But 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.