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by ccosm
1741 days ago
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Is there a reason why every price increase is referred to as "inflation" these days? I thought inflation had more to do with debasement of a currency than price fluctuations due to supply and demand, with the key functional distinction being that the former can be hard to reverse while the latter can self-correct given time (e.g. the lumber price increase we saw this summer). |
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Basically, inflation can be split into two types:
> An increase in the money supply may be called monetary inflation, to distinguish it from rising prices, which for clarity may be called "price inflation".