5 ms·

> The original meaning of “inflation” was “an increase in currency supply”. Citation needed. Inflation in economics as far as I know has always meant an incre

• SantalBlush 3y ago
  "On the Origin and Evolution of the Word Inflation" [0] But even this paper explains that the word was well into its evolution during the 19th century, before the Fed existed: >By the late nineteenth century, however, the distinction between “currency” and “money” was becoming blurred. >At the turn of the century, economists tended to refer to any circulating medium as money, and any change in the circulating medium relative to trade needs as an inflation of money. But this shift in meaning introduced another problem. Although it is easy to determine the amount of currency relative to the stock of a precious metal, how does one know when the amount of the circulating medium exceeds “trade needs”? >Economists appear to have reached a definitional crossroads during the first several decades of the twentieth century. Presumably, because they could be certain of the “excessiveness” of the circulating medium only by its effect on the price level, the notions of an inflated currency and prices became inextricably linked. So no Fed conspiracy as far as I can tell. [0] https://www.clevelandfed.org/publications/economic-commentary/1997/ec-19971015-on-the-origin-and-evolution-of-the-word-inflation https://www.clevelandfed.org/publications/economic-commentar...