What is Monetary Inflation?

What is Monetary Inflation?

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• Inflation
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[Finance101EC]

That's the way it's supposed to be!

[HerzingWpg]

Nice and simple!

[xcvsdxvsx]

i hate to nit pick but your definition is wrong. Monetary infation means an increase in the supply of money and does not infer anything about prices. to illustrate this point imagine that the central bank is inflating the money supply at a rate of 2% per year but technological innovation is driving down cost at a rate of 4% per year. In this scenario consumers would be subject to price deflation and monetary inflation at the same time.

[SpydaMonster]

KONY 2012

[xcvsdxvsx]

@Humour411 this would be true if the money was spread around evenly but in modern states the well connected elites get first dibs on the new money. consider, if 25% of the population got all of the new money than its value would be cut in half half but their holdings would be multiplied 5 times for a net wealth increase of 250%. heres the math (1000*.25+1000)/(1000*.25)/2

[MrLivePositive8]

@xcvsdxvsx This is what I was about to point out.

[enigmaticcheers]

hahahah i guess this vedio of 1:13 minutes it worth a lecture of 2 houres about inflation

[xcvsdxvsx]

@drbayoms i dont know about scam but it is a tax that very few people are aware of. if anything is a scam its the public education system that doesnt teach people about this tax.

[drbayoms]

"Inflation" is a scam.

[allolp]

@Humour411 I just started to learn all of this and i was wondering the same. It would seem that when the central banks create money they can instantly use it on the market, a market not yet adjusted to the new amount of money. Im not sure what they buy, but i imagine real estate and such, and therefor misbalancing the economy. The money sorta "pours" down from federal reserve on top down on banks-corporations and such, ending at the people, by which time the prices are adjusted.

[Humour411]

So what is the effect of Monetary infilation. I mean, if everyone had a dollar and then got one dollars extra, and the price increases marginally then, doesn't it just mean one dollar was substituted with TWO dollars, I don't see any difference.