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Controlling inflation by stimulating growth
This article is missing a subsection under "Controlling inflation" on economic growth. When the economy grows faster than the money supply, that's generally deflationary, so anything that can increase growth will tend to control inflation to some extent. For investments like infrastructure upkeep that return more to the economy than it takes to accomplish them, it's usually straightforward; similarly for education (turning would-be high school dropout taxpayers into college graduate taxpayers), preventative healthcare, etc. I tried to put this into an expanded paragraph at Inflation#Controlling inflation but someone really needs to make it into its own section there. All the other options are sort of Plan B since economic growth usually does a whole lot of other good things. I.e., you only want to tighten credit when you know for sure that the money supply is going to grow faster than the economy; perhaps because of too much borrowing in government fiscal policy. —Cupco 10:59, 18 September 2012 (UTC)
Added with some references. —Cupco 03:00, 19 September 2012 (UTC)
That would be true if economic growth didn't cause an increase in the money supply. But our fractional reserve banking system allows banks to create money by advancing loans, which they do more often when the economy is growing.
Shoe leather and Menu costs?
- No, those are actual costs associated with inflation that some economists try to model. They are particularly severe under hyperinflation such as in Zimbabwe recently, but oddly stimulative in their own right. Feel free to add or request citations; they aren't difficult to find. —Cupco 10:04, 20 September 2012 (UTC)
Inflation is perhaps best explained using RtNmP
Inflation, when you change your observer viewpoint from rock-bottom or stellar heights to neutral mid mode level, is nothing more than a re-calibration onto the mid-mode operating neutral between rock-bottom & stellar high. It is the mean sum-product return to neutral of each and every platform that pertains to that valuation, when you subtract the increment. Lot´s of people have a tendency to multiple that out (Divide that out), however it is not a multiplication process, inflation being an addicion and not a percentage, due succesive depletion & saturation product cycles where that never returns to neutral untill there is a paper devaluation.
- ∑∏(midmode operating point)/N
- amplitude return to zero
- amplitude return to neutral
- transistor operating point biasing
- small signal model analyses
- neutral buoyancy
- push-pull output
- closed loop recirculation systems
Economy is a sum-zero game, and a sum zero game is inherently a small signal onto a neutrally biased operating point.
(ps: don´t start with your eternal internal robotic heckling about original research et all. All you need is a capacity to think through the terms mentioned above). — Preceding unsigned comment added by 22.214.171.124 (talk) 12:18, 20 March 2013 (UTC)
Why is this included as one of the negative effects of inflation? Isn't it just a tad circular to argue that inflation is caused by inflation?
little change, money supply growth
Hello, i proppose to change the second sentence: "Economists generally believe that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply. However, money supply growth does not necessarily cause inflation." in: "However, money supply growth does not necessarily cause inflation from a more distinguished sight." or "However, money supply growth does not necessarily cause inflation from another point of view." Or something like that, cause the common definition of Inflation doesnt fit with the meaning of the sentence now (in my opinion). I dont know what this sight is intended to be, but when I imagine a pool of comparable units spread over the world and every unit is bound in a certain way with all assets, then i believe any rise of the number of units (along with a constant number of assets) will have the äquivalent effect of inflation. sry my english, greetings from austria --126.96.36.199 (talk) 13:32, 16 January 2014 (UTC)