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If you're going to define deflation as a fall in the price of any basket of goods, then you're just using it to mean 'the price of something went down'. That w
by gravitycop 18y ago
If you're going to define deflation as a fall in the price of any basket of goods, then you're just using it to mean 'the price of something went down'.
That would be the same thing as a rise in the value of money.
You can [flexibly define things narrowly or broadly] if you want, but it's hardly helping the conversation.
Do you use a different word for "temperature" for the temperature in your home, because some other parties use the word "temperature" to mean "gobal temperature"?
Different economic actors will value different things at different rates. Economic actors that happen to value computers highly will indeed perceive a rise in the value of money when computer prices drop.
- cchooper 18y agoBut deflation is not defined that way. It's defined as a decline of the general price level, and this is measured using a basket of goods that is intended to reflect general prices. You can pick holes in the problem of measuring 'general' prices if you want, but that is nevertheless the definition.
- gravitycop 18y agodeflation is not defined that way. It's defined as a decline of the general price level And the term "general" is also defined. It can mean general within a nation. It can mean general worldwide. It can mean general on a continent. It can mean general in a state. It can mean general in an economic sector (food, computers, cars, clothes, houses, etc.). Etc. So, we have to use a different word to describe non-general price declines? If so, what word would you suggest? http://www.google.com/search?q=deflation+prices+computers http://www.google.com/search?q=deflation+prices+computers Why would it be OK to use the word "temperature" in different contexts, but not the word "deflation"? What about the word "pressure"? Should we use a different word for tire pressure, because of the fact that "pressure" is also used in other contexts?
- cchooper 18y agoIf temperature meant 'global temperature' then it would indeed be wrong to use it to describe your room temperature. But it doesn't mean that, so it isn't. > what word would you suggest? How about 'falling prices'? >And the term "general" is also defined. Now you're just trolling.
- gravitycop 18y ago>> what word would you suggest? > How about 'falling prices'? You are going to have to go after a lot of people and criminally prosecute them for illegally using the term "deflation" instead of the legal term "falling prices". http://www.google.com/search?q=deflation+prices+housing http://www.google.com/search?q=deflation+prices+housing There are over 2 million Google hits for housing-price deflation, alone.
- gravitycop 18y agoThere is a general temperature in my refrigerator. There are also more-specific temperatures in my refrigerator. Each of those specific temperature areas can also be described as general, because within-them are yet more temperatuire areas and of even-greater specificity. There is also a general temperature of my home. The general temperature of my fridge contributes to that. In turn, the general temperature of the top shelf of my fridge contributes to the general temperature of my fridge.
- cchooper 18y agoOh dear, IHBT.
- deleted 18y ago[deleted]