Inflation and Deflation of Price and Money Supply - page 4.

Majormax

legendary

Activity: 2534

Merit: 1129

Quote from: plemechton on January 28, 2021, 09:13:17 PM

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

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).

Jazzi Mahesh

jr. member

Activity: 99

Merit: 1

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.

Bigmikie

newbie

Activity: 28

Merit: 1

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.

spacelens

copper member

Activity: 16

Merit: 0

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.

soheil

newbie

Activity: 1

Merit: 0

Deflation has a higher probably of occurring the higher the price rises with a near absolute certainty when it's equal to the GDP.

alfredlachance

newbie

Activity: 12

Merit: 0

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).

gideonpadang

newbie

Activity: 27

Merit: 0

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.
2

bosede1

member

Activity: 714

Merit: 16

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.

plemechton

newbie

Activity: 12

Merit: 0

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

AlexCoolBestik

newbie

Activity: 1

Merit: 0

You can read the news about this https://smi.kr.ua/

ken sue

newbie

Activity: 14

Merit: 0

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.

Wisbrown

newbie

Activity: 81

Merit: 0

How is the deflation and inflation of price and supply of money predicted in crypto world

ehsan8787

newbie

Activity: 1

Merit: 0

Quote from: hazek on February 19, 2013, 12:02:08 PM

Quote from: jrussou on February 19, 2013, 11:53:32 AM

While I despise them, I see the genius of the Federal Reserve system.

There's genius in stealing? Roll Eyes

your description of this subject was very good

Durgesh728

newbie

Activity: 15

Merit: 0

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.

hachivis

newbie

Activity: 2

Merit: 0

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

Majormax

legendary

Activity: 2534

Merit: 1129

Quote from: degenLove on October 22, 2020, 03:14:24 PM

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

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.

degenLove

newbie

Activity: 10

Merit: 0

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

thefiniteidea

hero member

Activity: 509

Merit: 564

"In Us We Trust"

I think we can safely see now (in 2020), how money supply inflation directly affects asset prices, including Bitcoin.

Cheesy

crwth

copper member

Activity: 2940

Merit: 1280

https://linktr.ee/crwthopia

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.

lepbagong

full member

Activity: 2268

Merit: 121

Enterapp Pre-Sale Live - bit.ly/3UrMCWI

Quote from: chrisculanag on June 01, 2020, 12:03:06 PM

Quote from: Scotslass on May 13, 2020, 05:36:03 AM

Quote from: FanatMonet on January 26, 2020, 03:41:49 AM

Quote from: Linkkoin on January 16, 2020, 11:30:14 AM

Quote from: Ejanend on January 04, 2020, 11:25:52 AM

Yes. Inflation and deflation of the prices is controlled by the governmental bodies. This is not dependent only on the cryptocurrencies. Various financial activities that are taking place at the national and the international level determine the prices in a specific country. Moreover the economic growth is much relatable to the development in different spheres.

Not to mention that manipulating national currencies (eg. by printing money) is often done by purpose, to make own companies with their products cheaper than of its foreign competition. This is how China for years had been working as a factory for the world.

Each state is trying to help its producers by taking various tricks, whether it is a deliberate depreciation of the national currency, taxation of imports with various duties, and much more.
It’s just that some states use legal methods, while others may cheat.

overall US govs has been cheating all this time anyway - they have printed money so they inflated all funds of holders outside of the US, and then gave these printed money to the citizens
economically thats tricky, not cheating really, but we all know it is

i heared that but i dont know if this kind of trick is effective this time of crisis that affect the prices of all cryptocurrencies and also a paper money that we use for everyday's need. We witnessed that every crisis that effect us , it can make the value of crypto down or up.

as a central finance may not print more money than foreign exchange reserves in the form of gold and securities, then it will certainly experience inflation that can make the country worse off the economy. I doubt it is done, there are still many ways that can be done as a developed country in all fields. but I do not believe that the crisis will directly affect crypto because of the different treatment, crypto will continue to run if there is inflation or deflation.

Topic: Inflation and Deflation of Price and Money Supply - page 4. (Read 1424268 times)