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Much of the inflation is caused by monetary policy (e.g. fiat money and expansion of the money supply).
by captainredbeard 5y ago
Much of the inflation is caused by monetary policy (e.g. fiat money and expansion of the money supply).
- Empact 5y agoAnd several prominent efforts to remove that power from the government’s hands are ongoing.
- astrange 5y agoThat would actually mean they can't stop inflation. If you think it's so bad, then you could take down another country by getting its citizens to adopt your new cryptocurrency then inflating it. (More realistically, a small country might adopt a different fiat currency if it's really easy to get because there's a lot of it.) Luckily most people do want to make transactions in the official currency though; that's the upside of sales taxes.
- astrange 5y agoWhen the average person says "inflation" they mean gas prices have gone up, which is not caused by the money supply. The last time people cared about inflation in the 70s it was caused by an oil crisis; this time in housing inflation it's a lack of supply. Austrians constantly predict there will be extra bad hyperinflation in the US from the national debt; not only are they wrong but they caused the 2008 recession by being wrong.