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.comimage Melatonin ( @Melatonin@lemmy.dbzer0.com ) Asklemmy@lemmy.ml • 1 year ago message-square47fedilinkarrow-up1274
arrow-up1274imageHow 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.com Melatonin ( @Melatonin@lemmy.dbzer0.com ) Asklemmy@lemmy.ml • 1 year ago message-square47fedilink
minus-square intensely_human ( @intensely_human@lemm.ee ) linkfedilinkEnglish16•1 year ago This can mainly be caused by two things: You forgot expansion of the money supply.
minus-square ungoogleable ( @ungoogleable@lemmy.ml ) linkfedilinkEnglish7•1 year agoIncrease in the money supply does not in itself cause prices to go up. There’s an indirect mechanicism but it’s not automatic.
minus-square agarorn ( @agarorn@feddit.de ) linkfedilinkEnglish3•1 year agoTell 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?
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?