Thu, 17 Jun 2004

Inflation 2

Inflation is a description of an decrease in the price of money; nothing else. Den Beste gets it wrong when he attributes inflation to the price of oil. It doesn't affect the point of his posting, but why not get all the details right?

UPDATE: Joseph writes, saying that Den Beste is correct because the price of so many things is dependent upon oil that when oil gets more expensive, so does everything else, and rising prices is inflation. No, that's not right. Increasing prices are a symptom of inflation, but they are not inflation. Other things can cause prices to rise or fall. See the chapter on Inflation from _Economic Freedom & Interventionism by von Mises.

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