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If inflation is reduction in broad (not one single item) purchasing power of the monetary unit, then inflation will be felt when people lose confidence in the m
by landemva 5y ago
If inflation is reduction in broad (not one single item) purchasing power of the monetary unit, then inflation will be felt when people lose confidence in the money or the organization backing the money. USA will feel significant inflation when the public loses confidence in the federal government. EU is much further down that path.
- WalterBright 5y agoPeople never lost confidence in gold, and yet the 1849 gold rush caused inflation. Gold's buying power declined significantly.
- landemva 5y agoThat is a good example of a commodity money that experienced supply volatility and subsequent price volatility. It was inflation - more supply of the money. Money is tricky to do in all times for all use cases. Bitcoin is making a run for store of value money, and unlike gold it is truly scarce.