4 ms·
That describes inflation, not a bubble, unless you mean a bubble in $USD. If I then go to trade my million-dollar IOU for a house that now costs a million doll
by nostrademons 5y ago
That describes inflation, not a bubble, unless you mean a bubble in $USD.
If I then go to trade my million-dollar IOU for a house that now costs a million dollars because everybody has a million, that's a price increase. More dollars in circulation means higher prices for everything, which is inflation.
A bubble would be if I went to go buy a house and then found that your IOU was good for nothing and you didn't actually have a million dollars to give me. This was the situation in 2009 but doesn't appear to be the situation today.