Melatonin@lemmy.dbzer0.com to Asklemmy@lemmy.ml · 2 年前How come we experience so much more inflation than deflation? in other words, why does our buying power decrease far more often than it increases?lemmy.dbzer0.comimagemessage-square156linkfedilinkarrow-up1468arrow-down114
arrow-up1454arrow-down1imageHow come we experience so much more inflation than deflation? in other words, why does our buying power decrease far more often than it increases?lemmy.dbzer0.comMelatonin@lemmy.dbzer0.com to Asklemmy@lemmy.ml · 2 年前message-square156linkfedilink
minus-squareintensely_human@lemm.eelinkfedilinkEnglisharrow-up16arrow-down5·2 年前 This can mainly be caused by two things: You forgot expansion of the money supply.
minus-squareungoogleable@lemmy.mllinkfedilinkEnglisharrow-up9arrow-down4·2 年前Increase in the money supply does not in itself cause prices to go up. There’s an indirect mechanicism but it’s not automatic.
minus-squareagarorn@feddit.delinkfedilinkEnglisharrow-up3arrow-down7·2 年前Tell me: if the Fed prints a one quadrillion dollar bill but looks it into a safe so that nobody can ever use it. How much inflation do we get?
minus-squareplanish@sh.itjust.workslinkfedilinkEnglisharrow-up10arrow-down1·2 年前How much does the money supply go up by? It can’t really count as supplied if it’s locked in a safe.
minus-squareagarorn@feddit.delinkfedilinkEnglisharrow-up3arrow-down1·2 年前Aha. So the sheer amount of money is not important? Just, as if the circulation speed is the crucial point. Damn. Good for you for noticing.
You forgot expansion of the money supply.
Increase in the money supply does not in itself cause prices to go up. There’s an indirect mechanicism but it’s not automatic.
Tell me: if the Fed prints a one quadrillion dollar bill but looks it into a safe so that nobody can ever use it. How much inflation do we get?
How much does the money supply go up by? It can’t really count as supplied if it’s locked in a safe.
Aha. So the sheer amount of money is not important?
Just, as if the circulation speed is the crucial point. Damn. Good for you for noticing.