Topic: Inflation and Deflation of Price and Money Supply - page 4. (Read 1450690 times)
these two concepts are closely related, but have completely different definitions. inflation is an economic phenomenon, and deflation is one of the measures taken to get out of a difficult economic situation such as inflation. inflation is the depreciation of paper money, and deflation is the removal of excess money from circulation in order to increase its purchasing power.
In the end it is pretty simple the as the money supply has to be
large enough such there is a ready supply of capital in economy for the free efficient optimal exchange of economic goods and services
restricted enough such that the currency is not devalued as what happens when the supply of money exceeds the current demand, this fuels Inflation - Wikipedia which is bad
large enough such that the currency is not appreciating as what happens when the supply of money cannot satisfy the current demand, this fuels Deflation - Wikipedia which is bad
large enough such there is a ready supply of capital in economy for the free efficient optimal exchange of economic goods and services
restricted enough such that the currency is not devalued as what happens when the supply of money exceeds the current demand, this fuels Inflation - Wikipedia which is bad
large enough such that the currency is not appreciating as what happens when the supply of money cannot satisfy the current demand, this fuels Deflation - Wikipedia which is bad
There are many so called 'definitions' of inflation/deflation nowadays. Your quote gives a true statement but does not tell the whole story.
The velocity (flow) of money is always perceived as the way it can influence price levels. If we think of money as merely a ledger (which is all it is) , showing the balances of debtors and creditors, then price levels will be influenced both by transactions, and by the confidence levels engendered by stock of debt or credit. The confidence (or fear in the case of debt) gives rise to changes in quoted price levels, but the actual transactions can be different (compare with say, the stock market system).
Deflation would generally decline in the prices for goods as well as services that occur when the rate of inflation falls below 0%. Deflation would take place naturally, if as well as when the money supply of an economy is limited.
Actually,Inflation and Deflation are two opposite terms used in referring to the level of how good or bad the economy of a Nation is ........Now, where you have Inflation as the increase in price of goods and services at a particular period of time...... Deflation is the opposite of that definition.
These two are usually being used by Economist and general evaluation of an Economy by either an Analyst or satistics giver to evaluate or interprete the level of an Economy in the world economy.
These two are usually being used by Economist and general evaluation of an Economy by either an Analyst or satistics giver to evaluate or interprete the level of an Economy in the world economy.
The crypto world and cryptocurrencies will most likely change the way economists see inflation or deflation. Inflation can be often linked to issues of FX as some countries see their fiat currency rising which has an impact on the exportation of goods and services. If you think about currencies that are transnational, the way we analyze inflation today will have to evolve to the new models.
Deflation has a higher probably of occurring the higher the price rises with a near absolute certainty when it's equal to the GDP.
You shouldn't worry about inflation if you don't get paid in the past or forced to save cash instead of investing in stocks (for instance).
you are hopelessly brainwashed by the economists that brought you the shitshow of current fiat currency. Deflationary money is desirable, and a cornerstone of a wealthy society. Inflation makes society spend on things that are not worth spending on. Not only does it waste purchasing power, it also is a primary driver of useless spending that is destroying the planet.
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From my learning, in school about economics, I know that there is an inverse relationship between Price and Money Supply. Inflation also deals with an increase while deflation deals with a decrease in the price of goods and services. The topic really broaden my knowledge with the relationship with bitcoin.
In the end it is pretty simple the as the money supply has to be
large enough such there is a ready supply of capital in economy for the free efficient optimal exchange of economic goods and services
restricted enough such that the currency is not devalued as what happens when the supply of money exceeds the current demand, this fuels Inflation - Wikipedia which is bad
large enough such that the currency is not appreciating as what happens when the supply of money cannot satisfy the current demand, this fuels Deflation - Wikipedia which is bad
large enough such there is a ready supply of capital in economy for the free efficient optimal exchange of economic goods and services
restricted enough such that the currency is not devalued as what happens when the supply of money exceeds the current demand, this fuels Inflation - Wikipedia which is bad
large enough such that the currency is not appreciating as what happens when the supply of money cannot satisfy the current demand, this fuels Deflation - Wikipedia which is bad
You can read the news about this https://smi.kr.ua/
Theoretically speaking, the total money supply is closely related to inflation or deflation. As the money supply increases, a certain degree of inflation will occur, and vice versa, deflation will occur.
How is the deflation and inflation of price and supply of money predicted in crypto world
While I despise them, I see the genius of the Federal Reserve system.
There's genius in stealing?
In India we have always seen Inflation. Deflation is a term which looks very fancy to people around here, as people don't understand low to moderate Inflation is the one of the reason behind people moving to shops to buy secondary goods.
In a Bloomberg certification of Market concept there was a mention of India, which is considered as a case study to understand inflation. It is never a issue unless it cross a threshold, were as even a slight deflation can create serious problem, making consumers wonder, "Why wshouldn't we delay our purchase when we can get the same good cheap in future." This can in-turn can shrink economy.
In a Bloomberg certification of Market concept there was a mention of India, which is considered as a case study to understand inflation. It is never a issue unless it cross a threshold, were as even a slight deflation can create serious problem, making consumers wonder, "Why wshouldn't we delay our purchase when we can get the same good cheap in future." This can in-turn can shrink economy.
Let's just hope Biden will make his job well like Trump.
Trump handles the economy well...if covid didn't happen US is really big...like HUGE
Trump handles the economy well...if covid didn't happen US is really big...like HUGE
does anyone know how much interest were banks giving to people who want to deposit gold before fiat ?
would like to know how much will we get from bitcoin savings account in a bitcoin standard world
would like to know how much will we get from bitcoin savings account in a bitcoin standard world
The long term rate of interest has tended to converge around 2 1/2%. This rate has been found by natural 'price discovery' over 100's of years, without the setting of rates which we take for granted nowadays.
edit :
The long term rate is complicated by the fluctuations in inflation, which obviously affects the real interest rate drastically. Before fiat money, inflation was uncommon but began to appear in response to money issuers ie Sovereign Rulers , needing additional finance, and thus using their influence to debase currency. Possibly one could argue there was no need for an interest rate before the institutionalisation of money.
does anyone know how much interest were banks giving to people who want to deposit gold before fiat ?
would like to know how much will we get from bitcoin savings account in a bitcoin standard world
would like to know how much will we get from bitcoin savings account in a bitcoin standard world
I think we can safely see now (in 2020), how money supply inflation directly affects asset prices, including Bitcoin.
Since there is an actual breach with what the application should do and what it should not like collecting information and other stuff, it’s one of the reasons why they should ban it not just in India but everywhere since it is scary and illegal to be spied on.
For the trading of goods, it’s ideal to know that everything comes from China nowadays since the labor costs there are cheaper and fast to manufacture. There’s going to be an impact And how China is going to respond to the banning.
If there are fixed reporting’s of how much money and goods are supplied in the current economy, I think there will be a clear picture of what would happen, but for now, it’s still unclear.
For the trading of goods, it’s ideal to know that everything comes from China nowadays since the labor costs there are cheaper and fast to manufacture. There’s going to be an impact And how China is going to respond to the banning.
If there are fixed reporting’s of how much money and goods are supplied in the current economy, I think there will be a clear picture of what would happen, but for now, it’s still unclear.
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