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RE: This is a problem

in #investing4 months ago

Inflation quite literally means an increase in the money supply (when speaking in economic terms). Inflation can go up and prices can go down but that isn't likely. An increase in money supply inevitably causes an increase in prices in terms of that money supply. Don't confuse the term with so-called "inflation" indexes like cpi.

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"a general increase in prices and fall in the purchasing value of money." google

1: an act of inflating : a state of being inflated: such as
a: DISTENSION
b: a hypothetical extremely brief period of very rapid expansion of the universe immediately following the big bang
c: empty pretentiousness : POMPOSITY
2: a continuing rise in the general price level usually attributed to an increase in the volume of money and credit relative to available goods and services
-webster

noun
Economics. a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency (opposed to deflation).
the act of inflating.
the state of being inflated.
-dictionary.com

Even the definitions that conflate inflation with rising prices state that the rise of prices is attributable to an increase in the money supply. What is being inflated? The supply of money. As a result, prices rise.

"Inflation has nothing to do with money supply." Really?

this is incorrect. if true could never calculate USD inflation as the money supply is not known. its about price

You can't calculate exact inflation (or at least I don't know how you would). You are conflating our government's definition of inflation with a general definition of inflation. The U.S. government calculates inflation using a certain formula (more specifically, the consumer price index). Other countries do it differently. They are indexing it indirectly by looking at prices of certain goods and services. It's accuracy as a measure of inflation (or cost of living indicator which is what it really is) is debatable.

Inflation is an official term with an official number published every quarter by the government. Maybe do some homework. Inflation is an economic term that is used by economist and mentioned by main stream media a lot. Google is your friend. Good luck.

No, it is not. The U.S. Department of Labor's Bureau of Labor Statistics has various indexes that measure different aspects of inflation, the most well known and reported on is the Consumer Price Index (CPI). This is one measurement of the effect of inflation, not the definition of inflation. Like I said, other governments measure the effects of inflation differently. Argue semantics all you want, it doesn't change my original point that the more dollars you print, the less they are worth. There's a term for that expansion of the money supply...oh yeah, inflation. Google is your friend. Good luck.

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