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Inflation is, by definition, an increase in price of goods. Increasing stock prices are not inflation. In fact, in an inflationary market, stocks usually suffer
by URSpider94 5y ago
Inflation is, by definition, an increase in price of goods. Increasing stock prices are not inflation. In fact, in an inflationary market, stocks usually suffer because people make more money by investing in loans and bonds, which will pay higher interest rates. Money flows out of stocks and into bonds.
You can’t just redefine inflation to say it means inflation of stock prices.