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by dagw 840 days ago
Inflation is generally defined by the price increase of a basket of goods. If you relocate money from things outside that basket to things inside that basket then inflation can increase without the money pile getting bigger.
1 comments

Inflation is gauged by a basket of goods, not defined by it.

At heart, inflation is a mismatch between the real value of the economy and the currency placeholder used to represent that. This is why governments can (and need to) keep printing money as the economy grows.