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[quote user="justinx0r"] Danilo is correct. When the government inflates the money supply it dilutes the purchasing power your dollar, causing prices to rise. [/quote] I still disagree completely. Price increases are not always caused by inflation of the money supply. Inflation of the money supply CAN dilute your dollar, but it isn't required
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Hyper-inflation would only likely occur if resources of a nation were nationalized/socialized. If the U.S. dollar starts to hyper-devalue (lose value against other currencies quickly, ignoring gold entirely), it would cause U.S. based resources to fall in price against other currencies. These resources would include natural resources, but also include
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The problem in defining what causes inflation is that the two parties generally do not agree what the definition of inflation is. Austrians, such as most of us, believe that the definition of inflation is "the increase in money supply," therefore the cause of inflation is "increasing the money supply." Non-Austrian Economists tend