Austrian:
when a government increases the quantity of paper money, the result is that the purchasing power of the monetary unit begins to drop, and so prices rise. This is called inflation.
Unfortunately, in the United States, as well as in other countries, some people prefer to attribute the cause of inflation not to an increase in the quantity of money but, rather, to the rise in prices.
Source:
https://mises.org/library/inflationMainstream:
In the long run, inflation is caused by growth in the money supply. Inflation, the rate of growth in the average level of prices, can vary over the short run for many reasons. Over the long run, however, the rate at which the central bank (the Federal Reserve System in the United States) causes the stock of money to grow determines what the inflation rate is.
Source: Williamson, Macroeconomics 6th ed, Pearson
I think Mises' view is more biased, or he wants to emphasize "printing money" in his lecture. The evidence why the mainstream definition of inflation is more accurate is in the short run, for example, on Islamic fasting month (in the Islamic majority country), inflation will be high not because of printing money stuff, but because an increase in demand since people tend to eat more quality/complete foods during that period.
https://journal.umy.ac.id/index.php/esp/article/view/6576i'm only talking about the long run, and tbh these two quotes say the same thing to me---
basically the monetary theory of inflation. it's pretty well accepted that
all else equal increasing the money supply will eventually increase prices. the demand side economic view is that increasing the money supply is fine since we get adequate (if not equivalent) growth and thus stable/low price inflation. the austrian view is that this is only a temporary phenomenon before depressions wipe out all that growth.
i wasn't lobbying for one or the other, just distinguishing between the two schools of thought, and remarking that a predictably low and static emission rate may be a third approach. to bring up monero again---over the long term, its emission rate is firmly in between bitcoin's and the fed's target inflation rate. it seems like a good compromise between velocity (hoarding) and unchecked price inflation (increasing the money supply without equivalent growth).
the fundamental problem presently is that people are spending less money on goods and services, due to high unemployment and lack of confidence in the future.
we already have a problem of too much productivity. there is no demand for the current level of productivity, which is why there are so many layoffs happening. you can't get people to buy stuff they don't want just by making more of it.
Well, since economics is a social science, there's no such thing as binary yes or no, let's spin it shall we
Needs or wants are not equal to demand.
Demand is an economic principle referring to a consumer's desire to purchase goods and services and willingness to pay a price for a specific good or service.
Source:
https://www.investopedia.com/terms/d/demand.aspAs long as people are still alive and healthy, people will always need products and services, but they are unable or unwilling to pay at a particular price level. Hence, the idea is to keep producing because more supply will lower the price, with the hope that people can or willing to pay at the new price level.
that necessarily means businesses make less money. those with small margins already may become unprofitable entirely.
people with ample savings and continuing income will gladly scoop up discounted prices, but they are the people who haven't changed their spending habits. it's the unemployed/partially employed/failing business owners, who no longer have income to buy even at deflated prices, that are the issue. that's a huge chunk of the economy presently.
anyway, i'm just pointing out what i think could happen, not trying to predict doomsday or lobby for the austrian side. i'm both ambivalent and indifferent about deep monetary theory---too many unknowns for me to contemplate all that seriously. i simply don't know what's gonna happen re the current recession and future inflation either.
