[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 165 KB, 900x926, evilCircle.jpg [View same] [iqdb] [saucenao] [google]
18735097 No.18735097 [Reply] [Original]

What exactly is the definition of inflation? My economics teacher keeps saying that it is the rate of how prices increases, which as far as I'm concerned is complete bogus.
Imo inflation is the currency inflating, the total amount of a currency increasing and therefore the value of a single unit decrases, and as a consequence prices may increase.
So who's right?

>> No.18735108

>>18735097
al dente post my friend

>> No.18735124

>>18735097
This is why racemixing needs to be banned. I'm not even racist, I just want to break the cycle of suffering it perpetuates.

>> No.18735139

>>18735097
Teachers are teachers because they can't succeed in the practical world.

>> No.18735157

>>18735097
There's no way for us to know how much currency is being printed by these fucking fractional reserve bankers, what we do know when prices go up so I think it's a better indicator of inflation. There are methods of fuckery that muddy the waters even more like farm subsidies. The price of a pound of rice might have been relatively constant over the years but things like rent and insurance premiums have gone through the roof.

>> No.18735159
File: 85 KB, 768x768, a3404950-a871-11e9-862b-600d112f3b14_image_hires_103516.jpg [View same] [iqdb] [saucenao] [google]
18735159

>>18735097
become a real nigga
break the cycle

>> No.18735178

>>18735157
FYI I am not an economist

>> No.18735195

>>18735097
if the amount of money doesn't increase, and businesses jew it up and demand more for their products, there would still be inflation, due to them asking for more

>> No.18735221

Inflation in the literal sense is an increase in the supply of [X] in a given market. Prices only go up in reaction to the creation of new currency.

>> No.18735222

>>18735097
>>18735139
>>18735157
you niggas are all wrong
the banks have been printing shadow stacks for decades
inflation is the price of commodities/consumer goods going up, such as milk, bread, gas, etc

>> No.18735243

>>18735195
No, this isn't how a free market works unless you're talking cartels and monopolies (not saying those don't exist, but rather that the majority of the market exists in a free equilibrium)

>> No.18735278

>>18735222
Milk is a loss leader, stores literally sell it for $2 a gallon just to get you in the door

>> No.18735304

>>18735097
>ctrl+f
>velocity
>0/0
never change /biz/, youre all retards

>> No.18735387

>>18735097
you pic will exclude all high iq opinions on biz, statistically speaking

>> No.18735409

easy to spot a white beta.

his son is a mutt

>> No.18735453

>>18735222
Adding a zero at the end of everyone's bank balance wouldn't increase prices?

>> No.18735512

Who's your econ Teacher?

>> No.18735522

>>18735221
>Prices only go up in reaction to the creation of new currency.
This isn't true, prices can go up for a lot of reasons. If production becomes more costly prices would incrase as well.

>> No.18735624
File: 1.25 MB, 2000x1000, inflation_color2-216537dd3aeb4365b991b67790765e4f.png [View same] [iqdb] [saucenao] [google]
18735624

>>18735097
Inflation is when one unit of currency holds less value now then it did in the past.
Imagine:
Yesterday you went to the store and bought one bag of rice, it cost $1.
Today, you go to the store and buy another bag of rice, it costs $2.
Assuming the value of the rice did not change, the value of the dollar must have changed instead. The dollar inflated by 200%, it has half the value it did yesterday.

>> No.18735669

>>18735243
this may very well be true, but inflation describes only the increase in price, and not necessarily what caused it, in our current monetary system, the excess supply of money, definitely plays a part

>> No.18735729

>>18735453
>Adding a zero at the end of everyone's bank balance wouldn't increase prices?
Oh, you think they were going to give YOU that money? That's cute
They're putting that money on the fed balance sheet or lending it to china, they aren't buying ferraris with it

>> No.18735731
File: 1.97 MB, 260x320, 1587133047268.gif [View same] [iqdb] [saucenao] [google]
18735731

>>18735159
>become a nigger
>break stuff

>> No.18735862

>>1873509
You go to Smith?

>> No.18735869

>>18735729
exactly. they are buying financial assets and inflating their prices. just as you would see inflation in regular goods if you gave money to regular people.

>> No.18735915

>>18735097
Your teacher is right, just google it.

>> No.18737120

>>18735097
I'm half jap and actually taller than my dad, who's 5'10. Funny meme though