Post
Topic
Board Economics
Re: Inflation and Deflation of Price and Money Supply
by
benzone
on 08/05/2014, 22:47:01 UTC
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.

On this forum, yes. Anywhere else (any economics literature...), no. This is like telling a physicist there are two kinds of temperature, one based on molecule vibration and the other based on things being hot.