IMF: Largest driver of EU inflation is corporate profits

Re:IMF: Largest driver of EU inflation is corporate profits by ClumsyPilot on Tuesday June 27, 2023 @09:19AM (#36492294)

> In theory inflation cannot occur without money printing, because a rise in prices of something like oil or food must be compensated by a fall in prices elsewhere as demand for that less essential thing disappears.

This is silly, inflation existed before "money printing" existed as a concept. We had inflation when we had gold standard. Inflation existed even when we used physical gold coins to pay.

More plainly, the most important factor in the economy is velocity of money and you completely ignore that it exists. Higher velocity of money can allow inflation to rise, with a fixed supply.

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Re:IMF: Largest driver of EU inflation is corporate profits by nightski on Tuesday June 27, 2023 @12:25PM (#36495049)

Agreed, it is silly to say inflation "only" occurs due to money printing. I'd like to point out though that gold is printed. More precisely it is mined.

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Re:IMF: Largest driver of EU inflation is corporate profits by revelio on Wednesday June 28, 2023 @04:42AM (#36503910)

Inflation during the gold standard came from:

1. Debasement of the currency (reducing the gold content of coins)

2. Gold mining

3. Stealing gold from abroad

That's why the Spanish Empire suffered hyperinflation after Cortez, because so much gold was brought back to Spain from the conquered South American tribes.

Yes, money velocity has an impact too but the main thing which can affect that is government intervention (like by printing lots of money and giving it to people who then save it - low velocity - and later start spending it - higher velocity).

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