Inflation and Deflation of Price and Money Supply - page 56.

deisik

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Quote from: boumalo on May 07, 2014, 02:51:39 PM

Quote from: deisik on May 06, 2014, 03:26:53 PM

Quote from: boumalo on May 06, 2014, 03:17:31 PM

Quote from: madisona on April 30, 2014, 07:07:27 AM

If everyone hoarded bitcoins.
Bitcoins will end up up up.

Each time the price goes down it shakes out the weak hands and more btc end up with the hoarders and users

This is just wishful thinking. If it were so, the price wouldn't go down at all! Cool

It is a fact that when the price goes down the members that believe less sell and the members that believe in Bitcoin most don't sell

And so what? If the price goes down, it just means there're more sellers than buyers per unit of money (and the other way round). As simple as that... Cool

boumalo

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Quote from: deisik on May 06, 2014, 03:26:53 PM

Quote from: boumalo on May 06, 2014, 03:17:31 PM

Quote from: madisona on April 30, 2014, 07:07:27 AM

If everyone hoarded bitcoins.
Bitcoins will end up up up.

Each time the price goes down it shakes out the weak hands and more btc end up with the hoarders and users

This is just wishful thinking. If it were so, the price wouldn't go down at all! Cool

It is a fact that when the price goes down the members that believe less sell and the members that believe in Bitcoin most don't sell

deisik

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Quote from: boumalo on May 06, 2014, 03:17:31 PM

Quote from: madisona on April 30, 2014, 07:07:27 AM

If everyone hoarded bitcoins.
Bitcoins will end up up up.

Each time the price goes down it shakes out the weak hands and more btc end up with the hoarders and users

This is just wishful thinking. If it were so, the price wouldn't go down at all! Cool

boumalo

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Activity: 1918

Merit: 1018

Quote from: madisona on April 30, 2014, 07:07:27 AM

If everyone hoarded bitcoins.
Bitcoins will end up up up.

Each time the price goes down it shakes out the weak hands and more btc end up with the hoarders and users

ellen_me

full member

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Economics subject looks more exciting here than books. Tongue

Definitely if the value of BTC is high, there will be less BTC needed for a commodity as long as the price is not getting higher too.

nico

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Hello
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2432367

deisik

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Quote from: madisona on April 30, 2014, 07:07:27 AM

If everyone hoarded bitcoins.
Bitcoins will end up up up.

And one day someone finally decides to sell her stash and it all comes down down down... Grin

madisona

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If everyone hoarded bitcoins.
Bitcoins will end up up up.

deisik

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Quote from: Monkey1 on April 26, 2014, 11:09:23 AM

Are we more interested in the impact of inflation/ deflation or the constant argument about the definition?

I always suggest to use terms 'appreciating/depreciating currency' to avoid possible ~~confrontation~~ misunderstanding... Grin

Monkey1

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Are we more interested in the impact of inflation/ deflation or the constant argument about the definition?

ZephramC

sr. member

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Quote from: sana8410 on April 24, 2014, 05:12:48 AM

Inflation is one of the most important variables in economics. And the Glossary of Economics Terms defines deflation as occurring “when prices are declining over time”.

So, in your opinion, what is the "right" term for decrease in monetary base (which can or might not lead to decline in prices)? Is "money supply contraction" right term? Is the Glossary of Economics Terms anyhow more authoritative than other sources?

sana8410

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Inflation is one of the most important variables in economics. And the Glossary of Economics Terms defines deflation as occurring “when prices are declining over time”.

deisik

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Quote from: ZephramC on April 23, 2014, 11:56:23 AM

Quote from: deisik on April 23, 2014, 11:44:11 AM

Quote from: ZephramC on April 23, 2014, 10:30:33 AM

Quote from: deisik on April 22, 2014, 01:44:26 PM

Quote from: zolace on April 22, 2014, 12:38:46 PM

Inflation is the general increase in prices, so it is the goods that you buy whose price will inflate, rather than the currency used to buy the goods.

Some people want to be different and say that inflation is an increase in money supply (monetary base before all). It may or may not influence the prices... Cool

Those are two possible definition of inflation. Monetary inflation and price inflation.

To avoid confusion, money supply (or its increase) is better to be used instead of monetary inflation since deflation (the opposite of price inflation) has only one meaning (namely, currency appreciation). There is no monetary deflation in the sense of money supply contraction... Cool

And that, that is a big mistake!

It is common in science that terms initially having multiple meanings (like inflation) ultimately sustain only one primary definition. To attach additional meanings can only lead to further confusion as we can see here when people using the same words actually imply very different concepts and ideas... Cool

And I'm not even talking about people that don't consider economics as science... Grin

boumalo

legendary

Activity: 1918

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Rising prices is not good but decreasing pricing is good; paying less for stuff is a good thing :

https://www.youtube.com/watch?v=uaOudcjEqgM

noviapriani

sr. member

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Imagine if bitcoin or more importantly dogecoin caught on... I have always believed that Indians, once they catch an idea run with it full steam. In a country like India doge or crypto can be an even greater benefit as it does away with infrastructure like banks or atms on every corner...

ZephramC

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Quote from: deisik on April 23, 2014, 11:44:11 AM

Quote from: ZephramC on April 23, 2014, 10:30:33 AM

Quote from: deisik on April 22, 2014, 01:44:26 PM

Quote from: zolace on April 22, 2014, 12:38:46 PM

Inflation is the general increase in prices, so it is the goods that you buy whose price will inflate, rather than the currency used to buy the goods.

Some people want to be different and say that inflation is an increase in money supply (monetary base before all). It may or may not influence the prices... Cool

Those are two possible definition of inflation. Monetary inflation and price inflation.

To avoid confusion, money supply (or its increase) is better to be used instead of monetary inflation since deflation (the opposite of price inflation) has only one meaning (namely, currency appreciation). There is no monetary deflation in the sense of money supply contraction... Cool

And that, that is a big mistake!

deisik

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Activity: 3514

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Quote from: ZephramC on April 23, 2014, 10:30:33 AM

Quote from: deisik on April 22, 2014, 01:44:26 PM

Quote from: zolace on April 22, 2014, 12:38:46 PM

Inflation is the general increase in prices, so it is the goods that you buy whose price will inflate, rather than the currency used to buy the goods.

Some people want to be different and say that inflation is an increase in money supply (monetary base before all). It may or may not influence the prices... Cool

Those are two possible definition of inflation. Monetary inflation and price inflation.

To avoid confusion, money supply (or its increase) is better to be used instead of monetary inflation since deflation (the opposite of price inflation) has only one meaning (namely, currency appreciation). There is no monetary deflation in the sense of money supply contraction... Cool

ZephramC

sr. member

Activity: 475

Merit: 255

Quote from: deisik on April 22, 2014, 01:44:26 PM

Quote from: zolace on April 22, 2014, 12:38:46 PM

Inflation is the general increase in prices, so it is the goods that you buy whose price will inflate, rather than the currency used to buy the goods.

Some people want to be different and say that inflation is an increase in money supply (monetary base before all). It may or may not influence the prices... Cool

Those are two possible definition of inflation. Monetary inflation and price inflation.

deisik

legendary

Activity: 3514

Merit: 1280

English ⬄ Russian Translation Services

Quote from: zolace on April 22, 2014, 12:38:46 PM

Inflation is the general increase in prices, so it is the goods that you buy whose price will inflate, rather than the currency used to buy the goods.

Some people want to be different and say that inflation is an increase in money supply (monetary base before all). It may or may not influence the prices... Cool

zolace

sr. member

Activity: 364

Merit: 250

Inflation is the general increase in prices, so it is the goods that you buy whose price will inflate, rather than the currency used to buy the goods.

Topic: Inflation and Deflation of Price and Money Supply - page 56. (Read 1425007 times)