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More on inflation

Posted by $ TomB666 3 years, 2 months ago to Economics
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"This is an opportune moment to remind readers of a crucial distinction between inflation and rising prices. They are not the same, in spite of the commonly-held sense that they are. Inflation is an increase in the money supply (and in credit as well, though credit and capital markets in the early 1600s were small and primitive by today’s standards). Rising prices are among the many deleterious effects of the inflation. "
SOURCE URL: https://fee.org/articles/did-you-know-about-the-great-hyperinflation-of-the-17th-century/


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  • Posted by Herb7734 3 years, 2 months ago
    One of the most deleterious effects of inflation is that high prices are normal.It becomes actually disrespectful of math to attribute more and more zeroes to monetary amounts when the simple placement of a decimal point makes life and wealth easier to deal with.
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  • Posted by $ CBJ 3 years, 2 months ago
    It's misleading to say that inflation is an increase in the money supply. During much of the 19th century the U.S. money supply increased by many multiples without inflation. Turning gold bars into gold coins increases the money supply without debasing the value of existing gold coins. With fiat money, of course, it's a different story.
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  • Posted by $ allosaur 3 years, 2 months ago
    The Gulch keeps proving to be an advanced education.
    Up until now, me dino always just plain assumed that inflation and rising prices were the same thing.
    Thanks, TomB.
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  • Posted by term2 3 years, 2 months ago
    Today, our options are limited to escape the effects of government induced inflation- unless you are first at the spigot of money printing and phony credit. The swamp is deep and wide.
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  • Posted by ProfChuck 3 years, 2 months ago
    Inflation is a political tool that is deliberately imposed to create the illusion that it is possible to get something for nothing. It is a form of currency manipulation that would be criminal if done by anyone other than the government.
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  • Posted by freedomforall 3 years, 2 months ago
    "But in any event, customers will flee to competitors happy to “make money” by offering it in a more trustworthy form."
    If only there were legal competition and a free market in money tokens without "legal tender" laws.
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