Re:Public Comment on Inflation Measurement
by SkyMarshal on Wednesday September 08, 2021 @06:30PM
(#28463848)
Yes that term does seem to get commingled with different meanings. Increasing money supply vs increasing prices seem to be the main ones.
The former usually results in the latter, but not always, and sometimes with lag. And sometimes prices can rise without an increase in the money supply, for other reasons - a decrease in supply, an increase in demand due to some other factor than monetary inflation, etc.
And that's not to mention the different measurements of money - M0, M1, etc. - as subsets of monetary inflation.
I wish economists and journalists would better differentiate by using "monetary inflation", "price inflation", and/or other qualifiers for exactly which one they're talking about.
The former usually results in the latter, but not always, and sometimes with lag. And sometimes prices can rise without an increase in the money supply, for other reasons - a decrease in supply, an increase in demand due to some other factor than monetary inflation, etc.
And that's not to mention the different measurements of money - M0, M1, etc. - as subsets of monetary inflation.
I wish economists and journalists would better differentiate by using "monetary inflation", "price inflation", and/or other qualifiers for exactly which one they're talking about.