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No, not really. Inflation refers only to the decrease in value of money, it has nothing to do with wages. "In economics, inflation refers to a general progres

No, not really. Inflation refers only to the decrease in value of money, it has nothing to do with wages. "In economics, inflation refers to a general progressive increase in prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money." https://en.wikipedia.org/wiki/Inflation https://en.wikipedia.org/wiki/Inflation It says "reduction in the purchasing power of money", not "people can now buy less stuff for their salary". Inflation means you can buy less for the same amount of money, but how much money people earn is a separate matter.

neilwilson 5y ago
That's not an economic inflation. An economic inflation is when wages and prices go up together so nothing much changes other than numbers. If people can buy less stuff with their wages that's a redistribution away from the wage share and towards the profit share. Guess which share pays people to write the definitions on Wikipedia?
- lmilcin 5y ago
  I actually went to school (which included economics in its curriculum). I have also worked for many financial institutions over past 20 years including banks, brokerage houses and insurance companies. Currently for Citi Group as a tech lead for one of its risk systems. My work requires me to understand what inflation is because it has very deep impact on everything we do. Here you have other reputable source: https://www.investopedia.com/terms/i/inflation.asp https://www.investopedia.com/terms/i/inflation.asp "Inflation is the decline of purchasing power of a given currency over time."
  - neilwilson 5y ago
    "I actually went to school (which included economics in its curriculum). That'll be your problem. Any training in economics or financial institutions leads to a skewed view of how the world actually works. You don't understand what inflation is. You understand what financial institutions want to consider inflation to be because it affects the returns on the debt instruments. For everybody else in the economy that isn't a problem. In fact it is of benefit to them since it redistributes away from financial institutions towards actual people doing stuff. Inflation is more than just a narrow view of price changes. "When a further increase in the quantity of effective demand produces no further increase in output and entirely spends itself on an increase in the cost-unit fully proportionate to the increase in effective demand, we have reached a condition which might be appropriately designated as one of true inflation. Up to this point the effect of monetary expansion is entirely a question of degree, and there is no previous point at which we can draw a definite line and declare that conditions of inflation have set in. Every previous increase in the quantity of money is likely, in so far as it increases effective demand, to spend itself partly in increasing the cost-unit and partly in increasing output." The General Theory of Employment, Interest, and Money; John Maynard Keynes' Ch 21, V

neilwilson 5y ago

That's not an economic inflation. An economic inflation is when wages and prices go up together so nothing much changes other than numbers. If people can buy less stuff with their wages that's a redistribution away from the wage share and towards the profit share. Guess which share pays people to write the definitions on Wikipedia?

lmilcin 5y ago
I actually went to school (which included economics in its curriculum). I have also worked for many financial institutions over past 20 years including banks, brokerage houses and insurance companies. Currently for Citi Group as a tech lead for one of its risk systems. My work requires me to understand what inflation is because it has very deep impact on everything we do. Here you have other reputable source: https://www.investopedia.com/terms/i/inflation.asp https://www.investopedia.com/terms/i/inflation.asp "Inflation is the decline of purchasing power of a given currency over time."
- neilwilson 5y ago
  "I actually went to school (which included economics in its curriculum). That'll be your problem. Any training in economics or financial institutions leads to a skewed view of how the world actually works. You don't understand what inflation is. You understand what financial institutions want to consider inflation to be because it affects the returns on the debt instruments. For everybody else in the economy that isn't a problem. In fact it is of benefit to them since it redistributes away from financial institutions towards actual people doing stuff. Inflation is more than just a narrow view of price changes. "When a further increase in the quantity of effective demand produces no further increase in output and entirely spends itself on an increase in the cost-unit fully proportionate to the increase in effective demand, we have reached a condition which might be appropriately designated as one of true inflation. Up to this point the effect of monetary expansion is entirely a question of degree, and there is no previous point at which we can draw a definite line and declare that conditions of inflation have set in. Every previous increase in the quantity of money is likely, in so far as it increases effective demand, to spend itself partly in increasing the cost-unit and partly in increasing output." The General Theory of Employment, Interest, and Money; John Maynard Keynes' Ch 21, V