It’s depressing how few people understand inflation and why prices are rising. Check out this article on Investopedia, there’s no mention of printing money causing rising prices. http://www.investopedia.com/ask/answers/06/oilpricesinflation.asp Also a few weeks ago I heard an “expert” economist ta…

They have a different view of inflation than the austrians do. In mainstream terms higher general prices= Inflation It’s a difference in terms, not a sign of ignorance.

It is a sign of total ignorance even according to mainstream’s terms.

DD5, I have been waiting for a reply and whether or not you have seen the message I really don’t think that you understand exactly what you’re saying. A large increase in input prices causes a “supply shock” and a leftward movment of the aggregate demand curve. This will lead to an increased price …

There is no “supply shock”. There is no sudden sharp decline in oil supply. To my knowledge, there is no decline at all. That’s right, and unless the total supply of goods in the economy decreases, only a monetary induced change can cause all prices to rise. Given that we are not witnessing here …

What matters isn’t the actual supply it’s the price which is demanded for it. In neoclassical models an increase in input prices will, in the short run drive up costs and increase the price level. In mainstream models there are things besides an increase in the money supply which can lead to inflati…

You said “supply shock”. Get your story straight. Never mind that whatever you said up there didn’t make any sense. The price of oil can rise without a change in supply due to an increase in demand for oil. That’s right. But if more money is spent on oil, then less money must be spent on somethin…

“You said “supply shock”. Get your story straight. Never mind that whatever you said up there didn’t make any sense.” I used mainstream terminology that any economics 101 graduate should be able to understand. A supply shock is defined as " supply shock is an event that suddenly changes the price o…

You’re still not getting your story straigt. Is there or is there not a decrease in the oil supply? (don’t reply, this is for you to ponder upon). I have said enough already.

Rising oil price causes inflation!

Economics Economics Questions

bearchu May 10, 2011, 1:06am 11

https://forum.freecapitalists.org/t/oil-price-rises-and-qe2/18566

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Rising oil price causes inflation!

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