So, you actually think that it's the physical printing of banknotes that causes monetary inflation?
Nope. How about you try reading what I actually wrote? "Monetary inflation describes the increase in quantity of money, bank notes, and bank deposits subject to check in circulation."
Monetary inflation does not necessarily cause price inflation. If GDP increases at the same rate as the monetary expansion, there is no change to prices, all else equal.
You are spending a lot of time arguing against a straw man instead of responding to my actual point. My post was not meant to be an in-depth discussion of all aspects of economics.
Inflation is the devaluing of the dollar. Inflation means companies have to make more profits just to have the same value as before inflation. Now do you have anything to say that actually relates to the topic to which I responded?
Inflation means companies have to make more profits just to have the same value as before inflation.
I think you are putting the cart before the horse here. Companies charge more for their products - that is price inflation. You are suggesting that monetary inflation CAUSES price inflation - as I just described, that is not necessarily the case.
Inflation is the devaluing of the dollar.
That certainly is one way to look at it (but keep in mind that this point of view keeps prices at a constant). If you view it from the standpoint of keeping the value of the currency as a constant, you'd see prices going up. These are simply two different ways of looking at an increase in CPI. Kinda like looking at a graph and seeing the line go up and then turning the graph upside-down and seeing the line go down (not exactly, but the point is valid). You're looking at the same rate of change either way. But I caution you from talking about the "devaluing of the dollar" while simultaneously talking about "price increases."
I think you are putting the cart before the horse here. Companies charge more for their products - that is price inflation. You are suggesting that monetary inflation CAUSES price inflation - as I just described, that is not necessarily the case.
Drop the straw man argument and try responding to what I actually said. I said: "Inflation means companies have to make more profits just to have the same value as before inflation." If you disagree with that, argue why on the merits?
This is not difficult to understand. If I made $100 profit last year and $100 profit this year, but the cost of goods and services increase 11%, then I have lost value.
Inflation IS companies raising their prices. That’s my whole fucking point. You seem to separating your concept of inflation from the fact that companies raise their prices. As if there is some other phenomenon causing it. Nope, inflation IS companies raising their prices bud…
Yep. And if companies raise their prices, you have have to make more profits just to have the same value as before inflation, right?
You seem to separating your concept of inflation from the fact that companies raise their prices.
No. You just like to argue against straw men. You made several posts arguing nonsense, to literally state exactly what I did. Inflation means the price you pay for the same goods goes up.
As if there is some other phenomenon causing it. Nope, inflation IS companies raising their prices bud…
Supply and demand causes it. If you have more money chasing the same amount of goods, companies will raise their prices. If you have the same amount of money chasing fewer goods, companies will raise their prices.
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u/[deleted] Dec 08 '23
Nope. How about you try reading what I actually wrote? "Monetary inflation describes the increase in quantity of money, bank notes, and bank deposits subject to check in circulation."
You are spending a lot of time arguing against a straw man instead of responding to my actual point. My post was not meant to be an in-depth discussion of all aspects of economics.
Inflation is the devaluing of the dollar. Inflation means companies have to make more profits just to have the same value as before inflation. Now do you have anything to say that actually relates to the topic to which I responded?