[Southack]

"GDP growth is deflationary, causes (not is) deflation."

No. In fact, the majority of the time GDP growth goes hand in glove with inflation.

Consider that office rents rise as a local economy heats up. Look at property prices in "hot" economic areas like Vegas.

It's only in the esoteric, academic world where one can filter out reality while focusing solely upon mere "theory" that anyone can really say with a straight face that GDP growth "causes" deflation.

Oh sure, in theory there can be cases where GDP growth actually causes deflation, but that's the exception. The rule is that most of the time we see higher prices as an area grows economically.

[Toddsterpatriot]

Oh sure, in theory there can be cases where GDP growth actually causes deflation, but that's the exception.

The rule is that most of the time we see higher prices as an area grows economically.

Higher prices due to higher demand is different from inflation.

So, do you understand what the Fed does? Do you know what monetary is?