[EGreg]

Money is created many different ways. Banks could loan out a lot of money for instance, if some promising new opportunity is discovered. M2 money consists of many more things than just government-issued money from the mint.

Secondly, inflation is defined as a RISE IN PRICES and not the printing of money. Even Milton Friedman said that inflation is a monetary phenomenon. His claim be totally tautological if the definition was as you think it is.

So, tons of things can lead to inflation. Here is a list: https://www.investopedia.com/ask/answers/111314/what-causes-...

[WalterBright]

Most of those investopedia inflation theories were debunked by George Reisman in the book "Capitalism". There's an awful lot of garbage circulating around as to what inflation is and what causes it.

The most ridiculous was Gerald Ford's WIP (Whip Inflation Now) campaign in the 70's:

https://en.wikipedia.org/wiki/Whip_inflation_now

Now, banks do create money when they make loans. But this is not inflationary as the loans are made against collateral, i.e. it is matched against value. And when the loan is repaid, the money is destroyed.

When banks make loans that have no collateral and are not paid back, it is inflationary. Guess who does that? The government! Most of what the government says about inflation is propaganda, because (like Gerald Ford) they want to blame anything and everything but government policy.

It's as much propaganda as people blaming "the speculators" for increasing housing prices.

[EGreg]

Your comments indicated you thought inflation is printing money. So now you claim to know better than those who know the actual definition, what leads to inflation?

Who do you think increased the housing prices?

https://qz.com/1064061/house-flippers-triggered-the-us-housi...

Look, bitcoin prices have gone up, and also other cryptos. Why can't other asset classes go up because of speculation too?

[WalterBright]

> you thought inflation is printing money.

Creating money with no collateral and lending it out is equivalent. Whether the banknotes are actually printed on paper or just digitally added to a ledger makes no difference.

> you claim to know better

Why yes, yes I do know better than people who don't know better. I cited George Reisman, for instance, as someone who does know better.

> Who do you think increased the housing prices?

Supply and demand.

> bitcoin prices have gone up

Because people think bitcoin is the currency of the future.

Speculators don't cause assets to rise in value. They are betting that the assets will rise in value. Big difference.