What is Inflation? | Ask an Economist

What is #inflation, why is it happening, and what can governments do about it? We answer these questions in our newest series, Ask an Economist.
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Send your questions to [e-mail] and we’ll answer them in our next episode.
Read more about inflation: bit.ly/3Lo0lId

[@cooperbry]

Milton Friedman, a Nobel laureate economist, famously stated that inflation is always and everywhere a monetary phenomenon, which means that money loses its purchasing power. IT'S MONEY PRINTING !

[@kno1king190]

INFLATION is an increase in the money supply by the Fed Reserve Bank and Government that causes a rise in PRICES. IMF the people are NOT stupid.

[@wonderLibra82]

lol what about brrrrr money printing lol

[@BitFloh]

money printer go brrrrrrr

[@ibandribew]

Nice try, IMF. How stupid do you think we are?

[@Koopatroop101]

No mention of the trillions of dollars of money printing ?

[@e.vangelios7285]

curious, right?

[@BitFloh]

They say that supply and demand works well in every economic except money. Of course that's nonsense. The expansion of the money supply is the cause of inflation in 99% of cases.

[@Brandon-xp1ob]

No.. Of course not 😮😂

[@BitFloh]

@@Brandon-xp1ob No the real cause of Inflation is the concert of Taylor swift. She drives prices high. We should ban music.

[@Brandon-xp1ob]

@@BitFloh exactly. Damn pop culture phenomenons🤣🤡🤡🤡 🧡

[@arthur-ej9jl]

mark my words,they will blame bitcoin and crypto is why inflation is so high

[@rushdHBTS]

Relationship with money circulation and printing policy not talked in details.

[@Giorginho]

Probably a diversity hire right there

[@juansalvadordomandl5287]

"Money printing" affects the demand side. More money supply means lower interest rates (the price of money) or viceversa, lower interest rates means more demand for goods. It can lead to overheating inflation depending on the GDP gap. However, take for example the USA stimulus checks or any fiscal expansion policy. Fiscal policy is not necessary financed by "money printing" but with taxes or public debt (in national currency). This also leads to an expansion in aggregate demand, and it can lead to overheating inflation. A difficult question is what is the difference between a money printed fiscal expansion and a tax/debt fiscal expansion on real and nominal macroeconomics variables. This last thing is not well known, Jordi Gali has a paper about this.

[@atlantium65]

Prices increases are symptoms of inflation. Inflation is credit expansion. Nice try, IMF.

[@BitFloh]

exactly

[@dioumakamara1642]

This was crystal clear. You litteraly talk to my mind. Thank you🎉

[@enayathali8971]

well explained,

[@maxamednuur1881]

Here in somalia, mogadishu. We already inside inflation room. For example cpi(consumer price index). From 0.36$ into 0.46$ a one kilowatt of electricity. From 1.3$ to 1.5 $ a five barrel of portable water supply(1m³ of water). From 0.6$ to 1.2$ a one liter of petroleum. For 🚗 filling. List is going on. 10 thousand products. Are jumping up. Meat is local producing food, Is stable. Becouse 1killo of meat 4$. And 7$ camel and goat respectively.

[@reggied6122]

Thank you for info.

[@dereckewane767]

I LOVE THIS SERIE

[@4dFocusST]

So inflation is about disruption in the supply chains and covid? The fact that the Fed balance has shot straight up in 2020 thus affecting the “supply” of money, has nothing to do with anything, right?

[@maxamednuur1881]

Love u imf.

[@aslammighty8835]

Mam, I like you the way you describe inflation. Here in Pakistan the government took the loan, but aren't following the IMF rules, that should be followed. Like tax on land and properties, that can generate revenue for Pakistan and help to pay.off the credit they borrow from IMF. But what Pakistan government is doing not regulate the private societies and black listed more 74 percent residential projects especially in karachi and They aren't interested to pay IMF of they make land records online database, it would be easy to trace the tax records. Now try to understand the tricky part is no online land records means no tax on properties. The government don't want to pay off the credit they borrow from IMF. If IMF ask Pakistan government to put properties tax on go for land records online in Karachi Lahore first than there is chance that Pakistan government set targets made by IMF snd will be able to speed up the payment process.

[@rashell5136]

Inflation is a tactical disruption to have fun with boats and other toys.

[@SmoothHov24]

Inflation? That’s a monetary phenomenon. Thank u JPow and Crew for the all too real pain us regular people are feeling. Congrats on selling your stocks at the top then banning trading amongst yourselves. And congrats to all the Cantillionaires who got that helicopter money first and felt inflation’s pain the least.

[@BitFloh]

Wow you got it

[@LenPenzo]

Pure statist propaganda. You spent five minutes describing the SYMPTOMS of inflation, which is higher prices; inflation is caused by unfettered currency expansion that exceeds the value of goods and services produced.

[@aslammighty8835]

Government of Pakistan don't go for land records online especially for karachi because they know if they would do this IMF will swift the payment process. Currently the population of Karachi is 30 million people. So now you understand what and why are they hiding?

[@gcarbo]

How does new money come into existence?. That's the real question. New money is created as payment for sovereign debt central bank bonds. New money is created from thin air when the government treasuries cannot allocate the bonds in the market, so central banks, working with the government, create fresh money to buy their debt. The bonds are allocated mostly into superannuation and other institutions that use them as stores of value. In Australia and Canada, for example, the store of value is primarily the real state. But in the USA and other countries, it is mostly bonds. Central banks do not pay the bonds when they expire; they roll over the debt to new bonds with a new interest rate. The central banks pay the interest rates by issuing more money, so it is an increasing debt spiral. The game finishes when it requires issuing new debt to repay the interest at a higher rate than the official interest rate. It is called hyperinflation. The other way of creating debt is fractional reserve banking, which allows banks to create debts by a ratio of what they have as a reserve (deposits). It used to be 10% in the USA, but it was 0% after the pandemic. They can create mortgages that are fresh money from thin air when people request loans. So, peasants are not borrowing money that already exists; they have created money just-in-time for them that does not cost anything because they are just numbers on a screen but take real effort to repay it in 30-year loans. The creation of money for free that other people have to work for is the source of all evil incentives. At a rate of an average between 7 to 14% compound annual debasement on the world base currency and even higher in other weakened currencies, it can be assumed safely that most humanitarian inequality is created directly or indirectly because people cannot save what they earn for the future. People do not have a store of value instrument that they can use. People do not have an alternative to being poor. This is quickly coming to "first world" countries like the USA and Canada. There is news titled: "Torontonians making median income need to SAVE for about 25 years to get into a mortgage of a house in the city: report".

[@Sapphire1721]

Love the video. Great presentation, clear explanation and beautiful setting.

[@hb490]

With the abandonment of the gold standard in 1971, the truth was lost.

[@CamusAndCarrotJuice]

"Long-lasting episodes of high inflation are often the result of lax monetary policy. If the money supply grows too big relative to the size of an economy, the unit value of the currency diminishes; in other words, its purchasing power falls and prices rise.” - IMF site definition. so y u no talk about money printers going brrrrrrr. This video is silly. Should be called "What is gaslighting.?"

[@ibandribew]

Hey that's good

[@saikoloassad7892]

Thanks alot for the simple explanation.

[@Brandon-xp1ob]

We weren't asked to stay home.. we were told to do so. Also, what your describing is short term disruptions in the supply chain which eventually correct themselves and prices SHOULD return to normal. True inflation is caused by central banks printing record breaking amounts of "money" at zero cost to them. Propaganda at it's best. Never ask an insurance agent how much insurance you need. Central banks are the arsonist and the fire dept at the same time😂, or two face from Batman

[@dheerajdadhich7756]

J

[@Rubin4749]

Is this like that "What Is A Woman??" film??

[@gafurfur4237]

ug

[@honeypie1614]

Was this for west only so when is any such video coming for rest of us. For better understanding you should make videos and take examples which matter to us. For me increasing in price of broccoli or spinach does not matter or people like me don’t consume coffee we prefer tea. So if you want us to learn then give us example that is relatable to us otherwise video lost mine interest. West is not whole world.

[@haudace]

Those were just examples. You could simply just replace broccoli / spinach with whatever does exist in your geographical area.

[@arthur-ej9jl]

buy bitcoin and stop watching this propaganda