Quote from: Ejanend on January 04, 2020, 04:25:52 PM

Quote from: Majormax on December 16, 2019, 12:55:17 AM

Quote from: kannikaamudee on November 30, 2019, 10:20:30 AM

Inflation is when prices rise, and deflation is when prices fall. You can have both inflation and deflation at the same time in various asset classes. When taken to their extremes, both are bad for economic growth, but for different reasons. That's why the Federal Reserve, the nation's central bank, tries to control them.

Price changes are merely a symptom of inflation. The original, first definition is an increase in supply of money ( claims on assets and GDP) relative to the supply of assets and GDP. Thus inflation in most economies has already happened to an enormous degree in the past 10 years. Price changes have mostly yet to happen, but could still be forestalled by a balancing deflation.

All goods, assets and incomes will always experience their own rates of price change, depending on their individual relationship with the changing base money.

Central banks have no power to control price changes, but they use various tools (interest rates, repos, QE etc..) as a means to supposedly target a certain price outcome.

These are the reasons there is so much confusion in the measure and definition of the word 'inflation'.

Yes. Inflation and deflation of the prices is controlled by the governmental bodies. This is not dependent only on the cryptocurrencies. Various financial activities that are taking place at the national and the international level determine the prices in a specific country. Moreover the economic growth is much relatable to the development in different spheres.

Inflation has no constant definition. Each country has its own marked boundaries which determine the prices that are to be tagged as inflation. International or cross border trading has become common part of the economic structures in todays world therefore the price control has not remained constrained to the local markets .It is calculated in relation to the progress of trade between varied economies.