I understand why inflation currently happens. The price of gas goes up, so the cost of transporting goods goes up, so the cost of production goes up, etc etc. I can wrap my head around that. But how did it start? What was the first thing to go up in cost, creating this chain reaction? Could it have been avoided if the initial thing did not rise in cost?
In: Economics
Inflation doesn’t have a starting or ending point. It’s a normal and desirable phenomenon in a growing economy.
I guess if you had to name a starting point, I’d say the abolishment of the gold standard somewhere 20’s. That would still be arbitrary though.
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