If Governments use FIAT currency, why do we have inflation?
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Inflation would exist with and without fiat currency.
If we bartered and all of a sudden technology let me process more cotton (cotton Jin) you could see inflated cotton barter prices.
Back to fiat. Your question seems to hinge on fiat being in “use” by the government. I would ask what you think the government uses its currency for because save for a few very meta activities related to money supply and debt financing the gov doesn’t do much. It’s the governments citizens that do the vast majority of activities that drive inflation.
Separately, since your question insinuates that government actions can affect inflation I’m here to tell you that it’s very true that a government has levers it can pull to reign inflation in. But those levers have real world consequences and take time to see in the world so why we still “have” inflation depends on response time and accuracy of data that lead to the inflation finding.
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