3 ms·

This is a completely idiosyncratic definition that is advocated for by followers of midcentury economists like Mises. The standard definition of inflation is a

This 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 ago
Ya, 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.