Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: untrained skeptic

That is not an economic definition of inflation. That is a qualified term there- "(Price) Inflation" and describes an effect of rea- money- inflation i.e "Inflation" which is and only is an increase in the money supply such as to cause a rise in the price level. That is because a price rise is directly caused by an increase in cost, real or nominal. It is not so discretionary where money quantity inflation, Inflation unmodified, is entirely discretionary and is not a response to market forces. It is a deliberate action and always damaging to the economy. It It grants only temporary and relative benefits vis-a-vis other countries' economies in certain circumstances, i.e. it damages our economy while, at first, it damages the other economies more. You do not accomplish anything economically by using degraded definitions or making up new ones. You only make excuses for dangerous economic meddling. What happens, happens, whatever you call it and to talk about it rationally and clearly you must use the classical definitions, not the politically correct ones, even if they are written down in a book.


178 posted on 11/30/2006 3:09:18 PM PST by arthurus (Better to fight them over THERE than over HERE)
[ Post Reply | Private Reply | To 177 | View Replies ]


To: arthurus
Inflation - Economics: Economics. a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency (opposed to deflation). - Dictionary.com Unabridged (v 1.0.1) Based on the Random House Unabridged Dictionary, © Random House, Inc. 2006.

inflation - A general increase in the price level of goods and services. Unexpected inflation tends to be detrimental to security prices, primarily because it forces interest rates higher. A point to keep in mind is that a certain amount of inflation is already embodied in security prices. - Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott.

inflation - n 1: a general and progressive increase in prices; "in inflation everything gets more valuable except money" - WordNet ® 2.0, © 2003 Princeton University

I looked at a variety of sources and didn't find a single one that defined economic inflation as simply an increase in money supply.

Nor was that the definition used in any of the various business classes I took in college.

It is a proper use of the inflation to say the money supply becomes inflated when the money supply increases, but if you have a reference the defines the increase in money supply itself as economic inflation, please point me towards it.

It is important to use the correct definition of words in the proper context so the meaning of what we say is clear. Spending time arguing over definitions of words is also not a productive use of time.

I do want to make sure I am using "inflation" properly, but everything I'm reading other than your comments says I have been doing so.

229 posted on 12/01/2006 6:37:56 AM PST by untrained skeptic
[ Post Reply | Private Reply | To 178 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson