News for hackers. Stuff that matters.

A comment on Banks as Collateral Damage in a Class War. Parent comment

Re:Banks as Collateral Damage in a Class War by kodah on Wednesday March 22, 2023 @05:07PM (#35267103)
I'm actually very lost in terms of what inflation means anymore. As far as I've been aware, inflation comes from the cost/benefit relationship that is supply and demand.

For instance, housing inflation has to do with people who have long-running cheap mortgages who don't want to sell their asset just to pay a higher monthly premium while the market is in low supply. So shouldn't your calculation also take into account supply and demand?

[ Parent | on HN ]
Re:Banks as Collateral Damage in a Class War by NoboruWataya on Wednesday March 22, 2023 @08:36PM (#35269071)
Their post does take into account supply and demand. Giving people a big payout will leave them with a lot more money to spend on stuff, ie, the supply of money will increase massively. Unless there is a similarly massive increase in demand for money (ie, people selling new goods or services), then the relationship between supply and demand will lead to a significant devaluing of money, aka inflation.
[ Parent | on HN ]