Inflation and Deflation of Price and Money Supply - page 12.

MCVXYZ

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Activity: 630

Merit: 24

Quote from: Cryptomania098 on June 08, 2018, 06:03:33 PM

NInflation this is the constant increase in price of goods services in an economic over times at this time money looses it buying or purchasing power at this time more unit of currency goes out to purchasing small unit goods.

Deflation this is the constant decrease in prices of goods and services in an economic over time, at this time money gain it buying or purchasing power at this time less unit of currency goes out for it purchasing more goods and services

In additional there is one more interesting issue related to deflation and inflation,In particular,the boundary,the boundary between inflation and deflation,which is price stability,price stability occurs when the average level of prices is moving neither up nor down,which is measured by a price index.
What about inflation, I think its just a phenemonon that all counties experience.Sometimes I wonder why traders here are scared about inflation and deflation,Its just a natural process in global economy or even in regional economy.Anyway very interesting issue, I will be grateful if i see topics like this.

Bros_3

newbie

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Now, a days as we all know that the price of cryptocuurencies falls day by day due to the fall in the demand of Cryptocurrncies. As according to the experts or forecasting the price of BTC can be fall upto $6000 and in the month of july the price may be rises.

Onews1990

full member

Activity: 362

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I am sure about the statement that the crypto currency market can have price inflation and that comes from an unequal distribution of bitcoin around the world. Some people accumulated so much of it that if one day they decide to sell it all we will have the inflation in the market right away.

fortnite

jr. member

Activity: 111

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It depends where you put boundary between responsible saving and selfish hoarding. And where you put boundary between "only the best goods and investments should survive" and "economy and investment should be stimulated by gradually destroying value of people's money (bitcoins) and forcing them to spend and support consumption"...

Cryptomania098

newbie

Activity: 140

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NInflation this is the constant increase in price of goods services in an economic over times at this time money looses it buying or purchasing power at this time more unit of currency goes out to purchasing small unit goods.

Deflation this is the constant decrease in prices of goods and services in an economic over time, at this time money gain it buying or purchasing power at this time less unit of currency goes out for it purchasing more goods and services

Onews1990

full member

Activity: 362

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Nowadays it is quite a probllem, because the emission rate is stable all the time and it is hard to modify it so we need to work harder if we want to make it happen. But manipiation definetly has place in our society.

arikmont

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Thank you very much for sharing this very useful information, I am very happy to have found this information that I have been looking for.
this source

Ibrahim 2020

newbie

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Price inflation is not only derived from the market price of whatever it is you're exchanging a currency for, but it is also derived from the value of the currency 'itself', meaning the rate of monetary inflation along with supply and demand of that currency.

In other words, prices of good/services (price inflation/deflation) are reflective of the exchange rate due to FX trading and the Bitcoin generation rate due to mining (monetary inflation).

Azariel

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Quote from: cryptofonia on June 01, 2018, 06:22:31 AM

Quote from: Azariel on May 31, 2018, 05:19:32 PM

Quote from: jeraldskie11 on May 31, 2018, 09:37:57 AM

These is the common reasons why the price and money supply in the market is being inflationary and deflationary it's because of our economic problem like oil hike price and the sufficiency products distribution. So it is very important to maintain the peaceful situation in our whole world so the relationships of all country can be peace and happy together.

Unfortunately, such goal is quite hard, even impossible, to achieve, because world biggest countries in the first place are thinking about national interest, not about the global situation. Especially now, when there are the complicated political situation and a lot of conflicts between world "leaders", well-being of "simple" people sometimes can be sacrificed for the greater good of a nation. And of course a lot of money is spending on those conflicts, so it usually deepens financial problems of countries. So we can only hope that someday, we will become smarter and manage our resources more rationally.

I guess it's more important not the quantity of money but its velocity. The same is relevant for crypto as well: if we may see crazy speed of number of transactions following the instant mode of these operations one may predict that cryptocurrencies may take over the world financial system. What do you think?

I think that new blockchains that we already have allows cryptocurrencies to replace existing financial giants such as Visa and Mastercard, but there is a problem with regulations and maintaining existing government system. At the moment we don't have a working framework which will allow us to build crypto-based economies and of course, there is the question about the richest people and governments, a lot of them don't want to implement cryptocurrencies for a bunch of reasons. But in the near future, I think there is a possibility that we will move forward to the crypto-based economies, especially in developing countries.

cryptofonia

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Quote from: Azariel on May 31, 2018, 05:19:32 PM

Quote from: jeraldskie11 on May 31, 2018, 09:37:57 AM

These is the common reasons why the price and money supply in the market is being inflationary and deflationary it's because of our economic problem like oil hike price and the sufficiency products distribution. So it is very important to maintain the peaceful situation in our whole world so the relationships of all country can be peace and happy together.

Unfortunately, such goal is quite hard, even impossible, to achieve, because world biggest countries in the first place are thinking about national interest, not about the global situation. Especially now, when there are the complicated political situation and a lot of conflicts between world "leaders", well-being of "simple" people sometimes can be sacrificed for the greater good of a nation. And of course a lot of money is spending on those conflicts, so it usually deepens financial problems of countries. So we can only hope that someday, we will become smarter and manage our resources more rationally.

I guess it's more important not the quantity of money but its velocity. The same is relevant for crypto as well: if we may see crazy speed of number of transactions following the instant mode of these operations one may predict that cryptocurrencies may take over the world financial system. What do you think?

Azariel

newbie

Activity: 14

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Quote from: jeraldskie11 on May 31, 2018, 09:37:57 AM

These is the common reasons why the price and money supply in the market is being inflationary and deflationary it's because of our economic problem like oil hike price and the sufficiency products distribution. So it is very important to maintain the peaceful situation in our whole world so the relationships of all country can be peace and happy together.

Unfortunately, such goal is quite hard, even impossible, to achieve, because world biggest countries in the first place are thinking about national interest, not about the global situation. Especially now, when there are the complicated political situation and a lot of conflicts between world "leaders", well-being of "simple" people sometimes can be sacrificed for the greater good of a nation. And of course a lot of money is spending on those conflicts, so it usually deepens financial problems of countries. So we can only hope that someday, we will become smarter and manage our resources more rationally.

jeraldskie11

sr. member

Activity: 1246

Merit: 356

These is the common reasons why the price and money supply in the market is being inflationary and deflationary it's because of our economic problem like oil hike price and the sufficiency products distribution. So it is very important to maintain the peaceful situation in our whole world so the relationships of all country can be peace and happy together.

AsianNapoleon

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Activity: 47

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Within the paradigm Quantity Theory of Money (QTM) framework, inflation is related to changes in the money supply, but this framework has been seriously challenged and cannot be taken at face value. If you plot a consumer price index for a particular country with the respective money aggregate over time, you’ll see that they are unrelated. However, QTM defenders say that the inflation is just delayed, for an unspecified period of time… empiricists are waiting for an inflationary response(or lack thereof) to expanding the money supply in 2008 in the US.

There is a handful of articles in the literature reviewing the instance of Quantitative Easing (QE) during the Great Recession and the apparent lack of impact on inflation, not supporting the QTM. Other frameworks attribute inflation to demand-pull and cost-push factors. All of this is good for further reading as it’s certainly a controversy in macroeconomics.

JonathanCoper

newbie

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Why do a lot of people go for bitcoin when these, too, go under inflation and deflation of price and money supply?

What is the difference? I really don't get why people are crazy about bitcoin. Huh

trako

hero member

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Inflation is a continuous trend of increase in the general price level of goods and services prices in a given period..
In economies where inflation takes place, the buying power of money is falling.
Prices usually fall into deflation.
When inflation falls below zero, it becomes deflationary.

Dana BROOK

newbie

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I've said and what I needed to say. and I'm done. Root of our disagreement is not that you haven't repeated your claim often enough, I do not suspect that anything I write will cause you to think beyond repeating it yet again.

Uno17

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Activity: 322

Merit: 12

The worldwide economic situation, the oil price hike in the whole world, the distribution sufficiency of products and primary commodities, the peace order in the whole world, all of those are the common reasons of the inflation and deflation of prices and money supply in the market. That is why it is very important that each country could maintain peace and order in their own, good governance to the people, and maintain good relationships towards other countries to help the worldwide economy stable.

Paimav

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Economic activity is too much compared to the ability of the system to support it. Money has the peculiar property to be generally accepted. It would only mean that everyone has an equal opportunity to get their hands on that commodity, whereas at the moment this right is reserved for those who possess enough fiat currency, other people's debt.

sharkETfish

jr. member

Activity: 117

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I like how the others are very detailed on explaining the defiation and inflation and how it is relative to bitcoin. I have more to learn so these information really helps.

nguyennnhatttruongazzz

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Hiệu ứng bitcoin làm mọi người phải biết đến nó và tôi 1 thợ mỏ nghiệp dư cũng bị cuốn vào như bao thợ mỏ khác.. tôi có rất ít kiến thức về bitcoin cũng như cái đồng điện tử khác nên việc theo dõi cái bài báo và phân tích của các bạn trên bitcointalk cho tôi rất nhiều kiến thức để tôi có thể làm tốt hơn. Tôi cảm ơn vì điều đó. Một lần nữa cảm ơn bài viết và chúc cho tất cả chúng ta đều tìm thấy cái mình muốn trong nền công nghệ 4.0 này

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