NetNews Usenet Archive 1993 #3/NN_1993_3.iso/spool/sci/econ/9803

Text File | 1993-01-23 | 2.0 KB | 40 lines

Newsgroups: sci.econ
Path: sparky!uunet!cs.utexas.edu!sdd.hp.com!think.com!enterpoop.mit.edu!bloom-picayune.mit.edu!athena.mit.edu!cmk
From: [e-mail] (Charles M Kozierok)
Subject: Re: Inflation
Message-ID: <[e-mail]>
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Organization: Massachusetts Institute of Technology
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Date: Sat, 23 Jan 1993 15:18:18 GMT
Lines: 27

In article <[e-mail]> [e-mail] (Sung Hyun Kim) writes:
>In article <[e-mail]> [e-mail] (Charles M Kozierok) writes:
>>i really don't understand what you are trying to say here.
>>inflation simply means an increase in prices. if the price of hammers
>>in terms of bananas increases, then there is "price inflation"
>>of hammers in terms of bananas. but that would only happen due to
>>market effects. and when the number of bananas needed to buy a hammer
>>increased, people would start making more hammers and growing fewer
>>bananas. eventually an equilibrium, or at least a stable cycle
>>would be reached. you wouldn't see the inflation continue endlessly.
>
>Wait,wait..  You are obviously thinking in terms of MICROeconomics. I had
>a hard time in swallowing those concepts of "aggregate demand","price level"
>things since it didn't seem right when you think in terms of micro.
>
>But anyway, inflation means increases in overall prices, not just one price
>in terms of others..whatever "the overall prices" means, you have to figure
>out that..but I am pretty sure that it doesn't what you are thinking.

well, the original poster was claiming that inflation did not require
money. i was simply trying to say that it did, because the kind of
"inflation" you get in a barter system would not be the same, they would
just be price fluctuations due to demand and supply. the confusion is
in trying to apply the word "inflation" to a system without currency.

--
charles