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
Money devalues with time. Taking a mortgage, or credit of any sorts from the bank doesn’t really mean you get to use other people’s money,
In a way, it creates a void of money, and at that moment all other money are slightly devalued.
In my basic mind,
Inflation is the devalue of money, so increase in prices is a byproduct. Takes just as much effort to make the goods as before, but money is worth less now.
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