Quote from: ZephramC on April 23, 2014, 04:56:23 PM

Quote from: deisik on April 23, 2014, 04:44:11 PM

Quote from: ZephramC on April 23, 2014, 03:30:33 PM

Quote from: deisik on April 22, 2014, 06:44:26 PM

Quote from: zolace on April 22, 2014, 05:38:46 PM

Inflation is the general increase in prices, so it is the goods that you buy whose price will inflate, rather than the currency used to buy the goods.

Some people want to be different and say that inflation is an increase in money supply (monetary base before all). It may or may not influence the prices... Cool

Those are two possible definition of inflation. Monetary inflation and price inflation.

To avoid confusion, money supply (or its increase) is better to be used instead of monetary inflation since deflation (the opposite of price inflation) has only one meaning (namely, currency appreciation). There is no monetary deflation in the sense of money supply contraction... Cool

And that, that is a big mistake!

It is common in science that terms initially having multiple meanings (like inflation) ultimately sustain only one primary definition. To attach additional meanings can only lead to further confusion as we can see here when people using the same words actually imply very different concepts and ideas... Cool

And I'm not even talking about people that don't consider economics as science... Grin