3 ms·
No, it's not. Inflation, by definition, is a decrease in the purchasing power of money. Money can be spent on many things besides goods & services. Consider, f
by acuozzo 4y ago
No, it's not. Inflation, by definition, is a decrease in the purchasing power of money.
Money can be spent on many things besides goods & services. Consider, for instance: securities, land/real estate, entire businesses, foreign currency, bribes, and gifts (of money).
- cryptonector 4y ago> > > The root of inflation is an increase in the cost of goods & services. > > That's a tautology. > No, it's not. Inflation, by definition, is a decrease in the purchasing power of money. That's the definition, and it's the same as "an increase in the cost of goods & services". "The root [cause] of X is [definition of X]" is very much a tautology.
- acuozzo 4y agoI gave examples of several other things which can be purchased with money that are not goods & services. "Purchasing power" is therefore not limited to goods & services, but I defined inflation as an increase in the cost of goods & services alone. A tautology this is not.