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> The original meaning of “inflation” was “an increase in currency supply”. Can you provide a source for this? It seems like an overly monetarist view to me:
by pgwhalen 3y ago
> The original meaning of “inflation” was “an increase in currency supply”.
Can you provide a source for this? It seems like an overly monetarist view to me: trying to be assertive about the cause rather than just describing the phenomenon.
- deleted 3y ago[deleted]
- Bjartr 3y agoAccording to etymonline[1] >Monetary sense of "enlargement of prices" (originally by an increase in the amount of money in circulation) first recorded 1838 in American English. I also found this pdf from the Federal Reserve Bank of Cleveland called On the Origin and Evolution of the Word Inflation[2] that goes into more detail. [1] https://www.etymonline.com/word/inflation https://www.etymonline.com/word/inflation [2] https://www.clevelandfed.org/-/media/project/clevelandfedtenant/clevelandfedsite/publications/economic-commentary/1997/ec-19971015-on-the-origin-and-evolution-of-the-word-inflation-pdf.pdf https://www.clevelandfed.org/-/media/project/clevelandfedten...
- QuesnayJr 3y agoThis is a completely idiosyncratic definition that is advocated for by followers of midcentury economists like Mises. The standard definition of inflation is an increase in the general price level. Of course the size money supply and inflation are related, but they're not synonymous.
- pixl97 3y agoYa, I would imagine if you increased productivity without an increase in monitary supply you'd create deflation. Of course real economic activity is more varied than that so it gets complicated quick.