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Why the Definition of Inflation Matters
Why the Definition of Inflation Matters
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When people talk about “inflation” today, they generally mean rising prices as measured by the Consumer Price Index (CPI). But historically, “inflation” was more precisely defined as an increase in the amount of money and credit causing advances in the price level. Inflation used to be understood as an increase in the money supply. Rising prices were a symptom of inflation. I find this change in definition problematic. But many disagree with me. They argue that I’m being pedantic and the definition doesn’t really matter all that much. In a social media exchange, I argued that rising oil prices due...
Source: https://www.newswars.com/why-the-definition-of-inflation-matters/
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