I’m not sure if is the best place for this question, but it’s something I’ve only ever seen come up on this sub so hopefully it’s a good place for an answer.
Multiple times here I’ve seen people say that inflation is not a rise in prices. This is not how the word is normally defined or used, either by laypeople or economists.
What I’m trying to understand is where this idea comes from. Because clearly it’s coming from somewhere. Somewhere there must be people writing articles or having discussions where “inflation” is used in this specific way. A few times I’ve asked people where their definition comes from and been met by silence.
In: Economics
Some people see inflation not as an increase in prices but is a lowering of the individual value of the lowest denomination within that currency system.
From their point of view it’s not that the can of coke cost more money as much as the money isn’t worth as much as it was.
It’s basically seen it as a reduction in resource value as opposed to an increase in necessity cost
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