Defining Inflation. Prices ricing or value of money declining?

[Seymour Flops]

In high school in the late 1970's, I learned that inflation is a reduction in value of money, caused by the government creating more money than is currently needed in the economy. These were public school teachers, liberal Keynesians as I later realized. They stated - as fact - that the ideal is some inflation to keep the economy moving. They cited the depression when we had deflation, as an example of why we need inflation. Thus, they justified the federal government pumping money into the economy, which at that time was in horrible cycle of inflation and stagnation.

They taught is this to disabuse of of the child-like understanding of inflation as simply "prices go up."

But, now it seems that we are being told that prices going up is the definition of inflation. Very convenient for the big-government enthusiasts of both parties, who have been printing money so fast that the presses are struggling to keep up and they are now considering an official e-currency of some sort.

Prices go up, blame big oil, big Russia, big pandemics, and anything else. Just not big government.

 

[JWBooth]

Defining Inflation. Prices ricing or value of money declining?​

Yes, replace or with because.

 

[justoffal]

In high school in the late 1970's, I learned that inflation is a reduction in value of money, caused by the government creating more money than is currently needed in the economy. These were public school teachers, liberal Keynesians as I later realized. They stated - as fact - that the ideal is some inflation to keep the economy moving. They cited the depression when we had deflation, as an example of why we need inflation. Thus, they justified the federal government pumping money into the economy, which at that time was in horrible cycle of inflation and stagnation.

They taught is this to disabuse of of the child-like understanding of inflation as simply "prices go up."

But, now it seems that we are being told that prices going up is the definition of inflation. Very convenient for the big-government enthusiasts of both parties, who have been printing money so fast that the presses are struggling to keep up and they are now considering an official e-currency of some sort.

Prices go up, blame big oil, big Russia, big pandemics, and anything else. Just not big government.

Both are contributory.

Jo

 

[Manonthestreet]

 

[Moonglow]

The pitfalls of capitalism, inflation.

 

[Resnic]

Our money is becoming worth less. Stuff doesn't cost more, it just takes more money to pay for it.

That's because we print way too much money and all our money we are printing is backed by nothing at all when it used to be backed by gold, silver, etc. Now we just shit out a trillion dollar coin and it's only real value is the metal it's made of.

That's why we will see a push towards crypto money when we see the reset happen. A new form of money that we have no control over.

Any money you have you want to keep should be put into gold and silver. Sometime in the near future if you have a 100 dollar bill all it's going to be is a fancy piece of toilet paper if the current administration gets it's way.