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What did you meant by inflation in EU is very low?.....you call inflation running at 10% to 20% very low. I think you were referring to CPI which IS not inflation. Companies can borrow from the bank via people's savings. Look at China and S. Korea.
What did you meant by inflation in EU is very low?.....you call inflation running at 10% to 20% very low. I think you were referring to CPI which IS not inflation. Companies can borrow from the bank via people's savings. Look at China and S. Korea.
We need to go to the start of this thread. The idea of dividing price inflation and money supply inflation makes no sense. According to all major sources, these two categories are just cause and effect of inflation. CPI is the most basic measure of inflation worldwide.
What are your 10-20% supposed to mean and where did you get this data?
As for China; i wouldn't refer to it as an example of a place where people i.e. workers have a good and fair life, it is in fact quite the opposite. See Foxconn...?
When you have inflation, the prices for all goods and services do not go up straight away, hence price inflation would generally be lower than inflation. Food take months to grow and any increases in price would take months to kick in.
Understand Mises and Rothbard and you will understand better.
What are your 10-20% supposed to mean and where did you get this data? You will need to see the m1 to m4 money supply data to work it out and use the Austrian formulae.
