Look at the money supply compared to inflation. Inflation went up due to supply shocks, central banks printed money as supply shocks eased, and we’re left with stable, higher prices.
If central banks didn’t print money during the inflationary period, we would’ve seen a period of deflation as prices returned roughly to where they were.
Seriously, look up the numbers. Here’s UK money supply, for example.
CandleTiger@programming.dev 6 days ago
Companies deciding to raise prices (for any reason — justified or not) is what inflation is made of.
Inflation just means “prices went up.”
Jakeroxs@sh.itjust.works 6 days ago
That is an extremely simplified take of what inflation is.
Here’s a fun example as to why just saying “inflation means prices go up” doesn’t make sense, what happens when a group of companies conspire to raise prices simultaneously? Is that inflation or is that price fixing? propublica.org/…/yieldstar-rent-increase-realpage…
CandleTiger@programming.dev 6 days ago
In your scenario that’s inflation caused by price fixing. You seem to be saying these things are mutually exclusive but I don’t understand why you would say that.
Presumably price fixing in one industry would have trouble causing general systemic inflation. But simultaneous greed and price fixing through many industries all at once? Sure, that would do it.
Jakeroxs@sh.itjust.works 6 days ago
I suppose my point is if we put any cause of rising prices under the “inflation” umbrella, it gives people the wrong idea as to the cause. Rather then just specifying what is causing prices to rise, people just say “it’s inflation.”