Forum Home
PC World Chat
 
Thread ID: 104135 2009-10-17 22:13:00 Jan Birkeland Cicero (40) PC World Chat
Post ID Timestamp Content User
821568 2009-10-18 22:52:00 Well, we've got as far as step one. R2x1 (4628)
821569 2009-10-18 23:37:00 Wonder why they don't put prices up here,then we could all get a wage rise.That's called inflation Cic, it doesn't mean you get a payrise that actually gives you any more buying power :rolleyes:. Erayd (23)
821570 2009-10-19 02:12:00 That's called inflation Cic, it doesn't mean you get a payrise that actually gives you any more buying power :rolleyes:.

Inflation is caused by increasing the money supply,not increasing prices.
Cicero (40)
821571 2009-10-19 02:38:00 Inflation is caused by increasing the money supply,not increasing prices.It's actually caused by a lot more than just increasing money supply, although increasing supply (or lowering the required reserve in a fractional-reserve banking system) is certainly one notable cause.

Inflation is the change in real economic power of a currency - it doesn't particularly matter what causes it. I wasn't suggesting that increasing prices cause inflation, I was pointing out that they were related. The only way you can get both increased prices and increased wages in a free market is if your currency has positive inflation.
Erayd (23)
821572 2009-10-19 05:51:00 Wonder why they don't put prices up here,then we could all get a wage rise.
The above was in response to the below.

That's because prices are so high they need high wages
Cicero (40)
821573 2009-10-19 19:30:00 Inflation is caused by blowing something up. prefect (6291)
1 2