Ok. Inflation experts. Correct me if wrong.
Inflation is the rise in prices of products. This occurs two ways. The scarcity of the resource wanted increases with the demand for said resource. And/Or increase the money supply. (i.e. print more money)
Inflation can be one, either, or a combination of both.
Just how I see it. I maybe wrong though.
Inflation is the rise in prices of products. This occurs two ways. The scarcity of the resource wanted increases with the demand for said resource. And/Or increase the money supply. (i.e. print more money)
Inflation can be one, either, or a combination of both.
Just how I see it. I maybe wrong though.
Generally speaking no.
Scarcity of a product isn't inflation. It simply is supply and demand.
One def on inflation is expanding monetary base. Regardless of price of products if the money supply expands 5% you have 5% inflation.
Another def of inflation is a PERSISTENT RISE in GENERAL LEVEL of prices. One product going up in price isn't inflation. If all products (on average) are rising in price it isn't because of a rise in demand it is because the amount of money has expanded faster than the available goods & services. Each unit of currency is worth less thus is requires more to get same amount of goods.
Scarcity driven price increases isn't inflation. If a war with Iran broke out and oil spiked to $400 per barrel we wouldn't say we have 400% inflation. Scarcity can drive prices up irregardless of inflation just as a lack of demand for a particular product can drive prices down.
The only "debate" on inflation is:
a) inflation = rate of monetary expansion
vs
b) inflation = rate of monetary expansion / rate of economic expansion