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 prefer to look at it like a reduction in the value of money, i.e. you now need more money to exchange for the same stuff. And while that’s a useful simplification in some contexts it’s not exactly right. In the short term, some prices will increase more than others suggesting it’s the goods themselves increasing in price.
Latest Answers