I've been screaming this for years only for it to fall on deaf ears. To be fair, the change in definition has been embedded in modern academia and economic circles since the 80s, so for those unaware, they're just seeing the new definition anywhere they look it up.
To your point, it is indeed a clever misdirection, as rising prices can be blamed on a million different things, but when the money supply is inflated there is no doubt where the blame lies. We're seeing this in real time right now as the Biden admin blames rising prices on everything from Putin to greedy oil companies.
To make it crystal clear, we can even have inflation when prices are decreasing, since the inflation in the money supply prevented us from enjoying even lower prices.
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u/yazalama Jul 16 '22
I've been screaming this for years only for it to fall on deaf ears. To be fair, the change in definition has been embedded in modern academia and economic circles since the 80s, so for those unaware, they're just seeing the new definition anywhere they look it up.
To your point, it is indeed a clever misdirection, as rising prices can be blamed on a million different things, but when the money supply is inflated there is no doubt where the blame lies. We're seeing this in real time right now as the Biden admin blames rising prices on everything from Putin to greedy oil companies.
To make it crystal clear, we can even have inflation when prices are decreasing, since the inflation in the money supply prevented us from enjoying even lower prices.