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"government printing money IS inflation" is not true. Government printing money is one way of possibly generating inflation. There are other ways: scarcity of g
by gbin 4y ago
"government printing money IS inflation" is not true. Government printing money is one way of possibly generating inflation.
There are other ways: scarcity of goods and services through the lack of productivity is another example.
- sfe22 4y agoYou can look up the old definition of inflation (since recently they have changed it to be more confusing), which comes from the word inflate. Refers to inflating the money supply. Printing money is inflating the money supply. Scarcity of goods or services a will cause those respective prices to go up, but not broad price increases, which is often the cause of inflation.
- dermesser 4y agoThis is untrue, for example for energy or rent: if energy prices or rent increase, almost everything will also suffer from increased prices, as energy and rent go into almost every product of a modern economy.
- sfe22 4y agoI would say that energy and rent are not very correlated, so if both are increasing rapidly at the same time, it is probably because of inflation. And which one of my statements is not true? Definition of inflation or that scarcity of a product will cause that product to become more expensive?