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If you want to be accurate, that's not true. Inflation measures the decrease of purchase power of a currency, not its monetary mass, whichever you choose (M1, M2, etc).

An increase of monetary mass at a rate exceeding demand for money (caused by increased economic activity) is one of the ways to cause inflation, in this case by causing nominal price increases.

The USD is inherently inflationary because there is no limit to this mechanism. Bitcoin is not inflationary because there is.

Orange Bill 1y ago

Then it would be named something like „decreasion“. To measure the decrease of purchasing power in order to measure the inflation is only a construct invented by governments, to present a lower inflation to the people. (As they decide what is to be used in Customer price index calculation.

The increase of the prices is not the same as the inflation. It is only the increase of prices.

The inflation is the increase of the money supply. The increase of the prices is a result of the inflation nit the inflation itself. not every price increase is preceded by inflation.

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