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> Remember that the inflation that we are talking about is that with regard to consumer prices, which is often related to wages. Or we can use the traditional
by hartator 6y ago
> Remember that the inflation that we are talking about is that with regard to consumer prices, which is often related to wages.
Or we can use the traditional definition for inflation, the increase in monetary supply not an increase in price. Monetary inflation is very real in 2020 and 2021. A global increase in prices is a potential consequence of monetary inflation but it’s not mandatory. Monetary inflation is always bad from an economics perpective and always ends badly. We always try to forgo lessons from the past but this is very economy 101.
- harryh 6y agoThe traditional definition? What? "In economics, inflation (or less frequently, price inflation) is a general rise in the price level in an economy over a period of time." https://en.wikipedia.org/wiki/Inflation https://en.wikipedia.org/wiki/Inflation
- hartator 6y agoWebster 1983 definition of inflation: “An increase in the amount of currency in circulation, resulting in a relatively sharp and sudden fall in its value and rise in prices: it may be caused by an increase in the volume of paper money issued or of gold mined, or a relative increase in expenditures as when the supply of goods fails to meet the demand.” Hence the use of “traditional definition” wording. Which matters for example in classic readings of economics books. One can argue that the switch in definitions is more a political view to excuse printing money and not backed by any economics reasonings. Ref: https://inflationdata.com/articles/2010/07/21/real-definition-inflation/ https://inflationdata.com/articles/2010/07/21/real-definitio...