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You’re arguing circularly. Currencies are worth less when things cost more. Things cost more when prices increase. If a central committee increased the price o
by kasey_junk 4y ago
You’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.