I’ll buy that these tariffs will increase prices basically everywhere, making things harder to buy and everything suck a bit.
How is this “inflation?” My understanding of inflation is, printing more money means there’s more supply for the same demand, so the purchasing power of a unit of money goes down. Print a dollar without destroying a dollar, it’s easier to get dollars, dollars are less valuable. That is “inflation.” How will these tariffs decrease the value of money by making money easier to get?
Afaik inflation, even in the economics sense of the word, is just the increase in the price of things. We have different measures or inflation, e.g in the UK (and probably similarly in many other countries) we often measure inflation, for the purposes of fiscal policy, via consumer and retail price indexes, literally the cost of a certain range of items.
Printing money eventually causes prices to rise because there’s more money in circulation but the same number of goods, thus the prices increase (eventually). It’s a cause of inflation, not the cause.
Okay so.
I’ll buy that these tariffs will increase prices basically everywhere, making things harder to buy and everything suck a bit.
How is this “inflation?” My understanding of inflation is, printing more money means there’s more supply for the same demand, so the purchasing power of a unit of money goes down. Print a dollar without destroying a dollar, it’s easier to get dollars, dollars are less valuable. That is “inflation.” How will these tariffs decrease the value of money by making money easier to get?
Afaik inflation, even in the economics sense of the word, is just the increase in the price of things. We have different measures or inflation, e.g in the UK (and probably similarly in many other countries) we often measure inflation, for the purposes of fiscal policy, via consumer and retail price indexes, literally the cost of a certain range of items.
Printing money eventually causes prices to rise because there’s more money in circulation but the same number of goods, thus the prices increase (eventually). It’s a cause of inflation, not the cause.
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