designed to fight it — could threaten the entire global economy, a good reason to understand what causes inflation and how to manage this gradual loss of purchasing power.Inflation is defined as a rise in prices across an economy, and in 2022 it has emerged as one of the biggest threats to global prosperity. When prices rise unexpectedly, money doesn’t go as far as it used to, which can trigger demands for raises which then cause more inflation.
For example, if a lot of oil fields stop producing oil because of a war, the price of energy increases. Since energy is a critical input into almost every other good, prices of other things rise, too. This is often called “cost-push inflation.”In theory, a decrease in the supply of a good should lead to a higher price, fewer buyers, and a new equilibrium. In practice, things are more complicated.
No, it is not defined as such. 🤦🏻♂️
CommunityNotes
Inflation is actually an increase in the monetary supply. The resulting devaluation of the monetary unit causes a general rise in prices which most people refer to as inflation.
This is a bad-faith political attempt to redefine inflation as a rise in prices, to hide the negative effects of inflation (policy) Human Action by Mises:
You're defining the symptoms of inflation, not inflation itself.
Mar 25 2020 4Chan mysteriously was able to outpredict Harvard RE: Inflation. Let's look:
This is Harvard? Oh, how the mighty have fallen. Inflation is an increase in the currency supply. Rising prices are an _effect_ of inflation, not the cause or even the definition.
I thought Joe Biden said it was Putin
When prices rise unexpectedly? Are you kidding? The 2020 central bank policies were designed to cause inflation. The difference is huge. Experts, such as central bankers, knew. Intention
Bitcoin is the answer to the question may has failed to puzzle
Another option is to cut production until gets bellow market request (and nothing to be done). Check OPEC PLUS.
Excellent piece