Post
Topic
Board Economics
Re: How does inflation start
by
pening
on 05/03/2014, 19:40:02 UTC
...When you give this cheque as a payment to one person, cheque for 100$, you still have this money on your account until this person go to bank with this cheque and this person have this cheque for 100$ in her/his hand. So you both have 100$ dollars (total 200$) made of only one part of 100$. This person can even pay with the same cheque to any one who would accept it.

And this way we have 100% inflation on 100$ until that person monetize this cheque.

This is *not* inflation.  Inflation is measured in prices rising, not increasing the money supply.  Where has this basic misunderstanding come from to be so widespread?