Definition of Inflation

Posted on: March 10, 2025 at 16:58:56 CT

The pickle camp loves to use this one:

"is an increase in the money supply".

The Spanky loves to use this one:

"is a general increase in prices"

The J6 and other idiots use this one:

"is any increase in prices"

****

The real and actually USEFUL definition:

"is an increase in money supply in excess of an increase in the goods and services in the economy"

This implies creating too much fiat currency to chase a relatively smaller amount of goods and services, resulting in a devaluation of said currency and generally, "inflated" prices (measured in units of currency).



An increase in money supply commensurate with the growth of economic output and activity is NOT "inflation", it's just an increase in money supply. Defining any increase in monetary supply as inflation is useless and misleading.

Calling any price increase - general or specific - "inflation" is equally as inaccurate.

Let's all get on page here.

Edited by 90Tiger at 17:00:16 on 03/10/25