ATTN: AC-ists (1 Viewer)

[scuba_steve2121]

Huh?
Inflation is defined as a sustained rise in general price levels..
Yes it's caused by a number of things, but what do you mean by 'the value of the money'..are you talking about purchasing power?
Please be more specific young man.

what don't you get by the value of money going down?

the money that you have has less value then it had before?

how hard is that to understand?

inflation is not prices going up it is the value of money going down, which just so happens to lead to prices rising across the board.

if inflation was just prices going up then yes you could say it was caused by a 1000 things but this wouldn't make sense. normal prices going up or down is just the price mechanism. but unfortunately the new-classical views that you have been indoctrinated with tell you when prices go up at any time its inflation. however inflation is caused by one thing and one thing only. the expansion of the money supply, any other explanation is illogical.

 

[Optimus Prime]

I think he means a "price-rise" would be something costing more and being less affordable by a regular wage owner. With inflation it's affordability remains essentially the same but the money is devalued in comparisson.

 

[-Lemon-]

what don't you get by the value of money going down?

the money that you have has less value then it had before?

judged on what metric..?

but unfortunately the new-classical views that you have been indoctrinated with tell you when prices go up at any time its inflation.

nah, I defined inflation as a sustained rise in general price levels, changes in individual prices due to supply/demand factors are called relative price changes.

however inflation is caused by one thing and one thing only. the expansion of the money supply, any other explanation is illogical.

What metric are you using to define 'money supply'?

Sorry but your statements amount to ill-defined babble.

 

[aussie-boy]

this has nothing to do with the value of money going down. you have no logical bases, you're just spurting out the different ways money circulates in an economy.

The size of the money supply is essentially the speed at which it flows through the economy

Slow down this through bank deposits (where banks are required to maintain liquidity ratios) and you decrease the amount available to lenders ... i.e. decrease the money supply and maintain the value of money