pull down to refresh
10 sats \ 2 replies \ @Undisciplined 23 Oct \ on: Barter, double inflation and Bitcoin. bitcoin
Monetary inflation is only one particular form of demand driven price inflation. The other form would be people becoming more consumeristic. Either way, people are more willing to buy goods at a given nominal price.
In 1990, an economic crisis occurred in Cuba following the disintegration of the former Soviet Union, on which Cuba depended 1000%. This caused a disappearance of products and therefore an increase in the prices of basic products. We are not talking about luxuries or consumerism, we are talking about what is necessary to survive. People kept low salaries but were willing to pay whatever for basic products. This was resolved when the products that the government had withheld began to appear.
Now the phenomenon is different. Salaries have risen and products disappear. There is no such thing as what is necessary to survive, so there is nothing left after paying what is necessary. The products ARE NOT THERE.
reply
I understand. I was just completing your set of ways that (price) inflation can occur.
Inflated prices due to rampant consumerism is definitely a thing in America.
reply