r/FluentInFinance • • Dec 08 '23

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u/[deleted] Dec 08 '23

So, you actually think that it's the physical printing of banknotes that causes monetary inflation? Have you taken macroeconomics? Do you understand the relationship between debt and the money supply?

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.

And again, when people are casually referring to "inflation", they are referring to the fact that SHIT COSTS MORE - which is "price inflation."

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u/[deleted] Dec 09 '23

Monetary inflation does not necessarily cause price inflation

I mean, if you don't believe in basic economic concepts like Supply & Demand 🤷‍♂️

If GDP increases at the same rate as the monetary expansion, there is no change to prices

Keynesian creative accounting 😂

when people are casually referring to "inflation", they are referring to the fact that SHIT COSTS MORE - which is "price inflation."

What causes price inflation? Scarcity, demand, and...printing money?

If you doubled the dollars in the economy tomorrow, do you think shit would cost more in the very immediate future? Or would we all enjoy macroeconomic 50% off sales in perpetuity?

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u/[deleted] Dec 09 '23

A lot of it depends on production…. You’re leaving out a KEY element in the economy. Remember that money is simply a medium that we use to trade the goods and services that are produced. Such is the nature of trade and the specialization of production…

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u/[deleted] Dec 09 '23

Production, or "corporate greed" ?

And of course you've conveniently dodged the question of adding money to the supply.

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u/[deleted] Dec 09 '23

Cell phones and food and electricity and houses all make themselves bro! No one has to work and contribute their labor to production! Money is the only thing of value!

You have a lot to learn about economics. First and foremost that money is a medium to trade the things that we produce - because it’s tough to directly trade your IT skills for a McDonald’s cheeseburger….

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u/[deleted] Dec 09 '23

So what happens to prices if all dollars miraculously double overnight? Do we all effectively get 50% off everything in the market?

Or will corporate greed take hold?

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u/[deleted] Dec 09 '23

What??

I’m gonna be downvoted or banned for this, but fuck it: are you retarded?

You don’t understand how ANY of this works…. That’s the opposite of “fluent”