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I'm actually very lost in terms of what inflation means anymore. As far as I've been aware, inflation comes from the cost/benefit relationship that is supply an
by kodah 4y ago
I'm actually very lost in terms of what inflation means anymore. As far as I've been aware, inflation comes from the cost/benefit relationship that is supply and demand.
For instance, housing inflation has to do with people who have long-running cheap mortgages who don't want to sell their asset just to pay a higher monthly premium while the market is in low supply. So shouldn't your calculation also take into account supply and demand?
- NoboruWataya 4y agoTheir post does take into account supply and demand. Giving people a big payout will leave them with a lot more money to spend on stuff, ie, the supply of money will increase massively. Unless there is a similarly massive increase in demand for money (ie, people selling new goods or services), then the relationship between supply and demand will lead to a significant devaluing of money, aka inflation.