"There is only one meaning that can rationally be attached to the expression 'Inflation':
an increase in the quantity of money that *is not offset* by a corresponding increase in the need for money"
Ludwig von Mises on tail emission
#bitcoin
Discussion
IOW
if the monetary supply increases in pace with economic activity, it isnt inflation.
So people conflate "inflation" which means a rise in prices, with "monetary inflation", which is a misnomer IMO, it specifically refers to a rise in prices as a result of creation of money (obviously faster than the pave of economic growth or it wouldnt result in rising prices), but is used to mean the creation of money itself. This is actually called debasement, and I always use that term instead of "monetary inflation" shortened to "inflation" which creates ambiguity.
By definition youre right.
It's also important that there's a cost to creating new money. If someone just prints it, but it keeps up with economic growth, that still causes disruptions in the natural market. The created money goes to someone for free. But when it costs something to create, as it does with gold as money, or bitcoin or Monero, you don't have that problem.
great explanation.
the point of the note is to encourage this questioning of terms.
there is method to my pedantry lol
Mises didnt think expansion of the monetary supply was inflation.