4 ms·
All general means in that sentence is that the price increasing factors are more prevalent than the price decreasing ones. If there are several structural issu
by kasey_junk 4y ago
All general means in that sentence is that the price increasing factors are more prevalent than the price decreasing ones.
If there are several structural issues (eg greatest workforce change in 3 generations, war in Europe, worldwide pandemic, etc) they can all contribute to a general inflationary (or deflationary) trend.
It’s a very particular economic school that says only monetary policy causes inflation. And we have years and years of loose policy that didn’t put inflation on the front burner for economists to argue about.
- refurb 4y agoAll general means in that sentence is that the price increasing factors are more prevalent than the price decreasing ones. It doesn't. Inflation is an erosion of value of the currency. General means "across the board" because the currency is worth less. Sure, if there is a glut of apples and the price drops you may not notice the inflation baked into the price, but it's there. And if there is a shortage of oranges the price may jump higher than inflation, but that doesn't mean inflation is higher. People seem to be confusing general prices changes due to other factors with inflation. It's not inflation unless the currency is worth less.
- kasey_junk 4y agoYou’re arguing circularly. Currencies are worth less when things cost more. Things cost more when prices increase. If a central committee increased the price on everything without changing the monetary supply that would still be inflation. Similarly if the invisible hand does it or if there is broad collusion amongst producers.
- refurb 4y agoIts not circular because its different drivers of price. If gas prices rise the purchasing power of my dollar remains the same for most items. If inflation goes up, my dollar buys less of everything.