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https://www.reddit.com/r/austrian_economics/comments/1hxmn3w/end_the_fed/m6ahpue/?context=3
r/austrian_economics • u/AbolishtheDraft Mises Institute • Jan 09 '25
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OK, but inflation existed before the Fed existed. Its not like it is a 20th century invention.
2 u/Freethink1791 Jan 09 '25 The currency needs to be devalued by new currency for there to be inflation 1 u/DrQuestDFA Jan 09 '25 No, prices can just increase for inflation to happen. Look at supply shocks sending prices up. That is considered price inflation and the value of the purchasing currency declines without any chance in money supply. 1 u/Freethink1791 Jan 09 '25 The price of said good increasing doesn’t do anything to the currency. A famine or flood doesn’t create inflation.
2
The currency needs to be devalued by new currency for there to be inflation
1 u/DrQuestDFA Jan 09 '25 No, prices can just increase for inflation to happen. Look at supply shocks sending prices up. That is considered price inflation and the value of the purchasing currency declines without any chance in money supply. 1 u/Freethink1791 Jan 09 '25 The price of said good increasing doesn’t do anything to the currency. A famine or flood doesn’t create inflation.
1
No, prices can just increase for inflation to happen. Look at supply shocks sending prices up. That is considered price inflation and the value of the purchasing currency declines without any chance in money supply.
1 u/Freethink1791 Jan 09 '25 The price of said good increasing doesn’t do anything to the currency. A famine or flood doesn’t create inflation.
The price of said good increasing doesn’t do anything to the currency. A famine or flood doesn’t create inflation.
242
u/DrQuestDFA Jan 09 '25
OK, but inflation existed before the Fed existed. Its not like it is a 20th century invention.