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> Individual companies cannot cause inflation, because they cannot increase the money supply. No, you really don't know what the word inflation means in the ec
by lesuorac 3y ago
> Individual companies cannot cause inflation, because they cannot increase the money supply.
No, you really don't know what the word inflation means in the economic sense.
>> https://www.google.com/search?q=define+inflation https://www.google.com/search?q=define+inflation
>> ECONOMICS
>> a general increase in prices and fall in the purchasing value of money.
Also companies can 100% increase their prices and if a singular company such as Exxon does it then pretty much every company will also increase their prices because their cost of revenue went up.
- WalterBright 3y agoWhere does the extra money come from, lesuorac? > companies can 100% increase their prices Only if the consumers have the money, and are willing to pay it and not their competitor. Where do they get the extra money?
- lesuorac 3y agoI see you've moved past trying to argue what the definition of inflation is so I can only assume you've agreed me with. So to move on to your new topic, there is a framing problem here. There does not need to be extra money during a period with inflation. If I had $100 dollars and potatoes are $2 and a car is $50 I can get 25 potatoes and 1 car. If the costs of a car increases to $80 I can get 10 potatoes and 1 car. Inflation has occurred and I haven't done any changes to the money supply here. And then of course, Inflation isn't a new word post-Bretton Woods; there was inflation when people used gold as currency.