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> That's... not deflation? Isn't inflation/deflation about purchasing power? I.e. how much housing you can buy for a month's salary (for example), how much com
by spurgu 5y ago
> That's... not deflation?
Isn't inflation/deflation about purchasing power? I.e. how much housing you can buy for a month's salary (for example), how much computing power, how much food you can buy? If you hoard money you can buy more computing power down the line. Isn't that "deflationary"? While if you hoard money and buy food down the line you'd get less of it. So food would be "inflationary".
- rsj_hn 5y ago> Isn't inflation/deflation about purchasing power? No, that is the exact opposite of inflation/deflation. Inflation/deflation are about nominal prices of goods and services. If you want to talk about the price of a good in terms of a real quantity, then that is not measured by inflation or deflation and you need to specify what your measuring stick is, whether ounces of gold, or gallons of gasoline, or a median hourly wage in a specific labor market. There is one special term, called "real" prices, where the measuring stick is a weighted consumption basket, but that too is not going to represent purchasing power, which suggests deflating by either household income, or wages, or wealth.