Re:The Portuguese can no longer afford to live in Portugal
by WalterBright on Thursday September 01, 2022 @05:29PM
(#32683522)
If it was not caused by fiat money, I'd expect to see corresponding periods of deflation. Inflation is a sustained increase in the general price level. It is not a temporary spike from the fluctuations in supply&demand of goods and services.
Another way to understand it is to consider, what happens if the price of gas rises? Does that automatically put more money in your pocket to pay for it? Nope. You just have less money to spend on other things. But inflation (with a lag period) does put more money in your pocket.
> Could you share some countries with alternative money systems that aren't impacted?
Modern countries have all gone fiat. But we can look at the US from 1800-1914, which was not fiat money. There was zero net inflation in that period, while we've had endemic inflation ever since (aside from a brief period of deflation during the Depression).
> I'm not sure you deserve engaging
What I wrote is not the general opinion, though it is the opinion of economists. At least you were willing to talk about it, which is nice.
Another way to understand it is to consider, what happens if the price of gas rises? Does that automatically put more money in your pocket to pay for it? Nope. You just have less money to spend on other things. But inflation (with a lag period) does put more money in your pocket.
> Could you share some countries with alternative money systems that aren't impacted?
Modern countries have all gone fiat. But we can look at the US from 1800-1914, which was not fiat money. There was zero net inflation in that period, while we've had endemic inflation ever since (aside from a brief period of deflation during the Depression).
> I'm not sure you deserve engaging
What I wrote is not the general opinion, though it is the opinion of economists. At least you were willing to talk about it, which is nice.