Ben Bernanke admits "Inflation is a tax"
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Your explanations are very rudimentary and cliche and not entirely correct. If demand for a particular product goes up then the price will go up for short term. Increase in wages due to productivity do lead to inflation. Cost or rarity of inputs can lead to inflation. Employment going beyond the natural rate can push up inflation due to demand for labor. ATMs, credit cards and online banking lead to higher velocity of money/inflation. These are other causes of inflation besides expansion money
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@lXlRIVERlXl You need to read some books. Its quite obvious you fail to understand what I'm talking about.
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@Taffer20 If there are no supply and demand fluctuations, printing is the only cause. Deflation is when the currency supply decreases, inflation i9s when it increases.
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@lXlRIVERlXl Disinflation in the prices of various goods such as computers and cars. But inflation for the costs of food and fuel. There are multiple causes of inflation that are not only attributed to printing money.
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@Taffer20 You obviously don't knwo what inflation is. They may not be inflating at the rates they previously were, but they are still inflating at a DRASTIC rate, they have to print about 4 billion each day. PRINTING IS INFLAITON not high prices.
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NOW BERNANKE SAYS INFLATION IS TO LOW
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But, inflation has been coming down.
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Bernanke thinks he is GOD.
Civsuccess2 3 years ago 5