Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Key Resistance Broken To The Upside
>
Reply to Thread
Message:
<p>[QUOTE="Cloudsweeper99, post: 1381459, member: 3011"]This is incorrect, although a lot of people make the mistake. Inflation is a general increase in the price of goods and services in the economy caused by an increase in the supply of money that is greater than the increase in the demand for money. If the price of oil increased without a corresponding increase in the supply of money, then the prices of other goods and services [or the quantity purchased] would have to decrease. It's just math. In a free market where prices are permitted to increase and decrease with changes in supply and demand, some prices will always be rising and others will always be falling. This would be true even if there was a gold standard. In the case of oil, worldwide demand has been increasing faster than the growth in supply for a number of years. That's why the price of oil is up 7X in price over the past couple of decades. But this is not inflation. As Milton Friedman pointed out, inflation is always and everywhere a monetary event.[/QUOTE]</p><p><br /></p>
[QUOTE="Cloudsweeper99, post: 1381459, member: 3011"]This is incorrect, although a lot of people make the mistake. Inflation is a general increase in the price of goods and services in the economy caused by an increase in the supply of money that is greater than the increase in the demand for money. If the price of oil increased without a corresponding increase in the supply of money, then the prices of other goods and services [or the quantity purchased] would have to decrease. It's just math. In a free market where prices are permitted to increase and decrease with changes in supply and demand, some prices will always be rising and others will always be falling. This would be true even if there was a gold standard. In the case of oil, worldwide demand has been increasing faster than the growth in supply for a number of years. That's why the price of oil is up 7X in price over the past couple of decades. But this is not inflation. As Milton Friedman pointed out, inflation is always and everywhere a monetary event.[/QUOTE]
Your name or email address:
Do you already have an account?
No, create an account now.
Yes, my password is:
Forgot your password?
Stay logged in
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Key Resistance Broken To The Upside
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...