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"real inflation to the money supply" Inflation is what happens to prices, by definition. "Inflation to the money supply" is nonsense, like if you said int x =
by cynicalkane 14y ago
"real inflation to the money supply"
Inflation is what happens to prices, by definition. "Inflation to the money supply" is nonsense, like if you said int x = "foo" or talked about installing new RAM to store your photo album.
Also, the notion that banks can cause inflation by not spending reserves is baffling.
- nradov 14y agoNot at all. There are several different definitions for inflation, each of which is equally valid depending on the context. Consumer price inflation is one type. Other types include producer prices or money supply (including debt marked to market).
- tsotha 14y agoThis is wrong. CPI is not "inflation" except by common mis-usage. Inflation is defined to be an expansion in the money supply. You can have inflation and falling prices at the same time.