Quote:
Originally Posted by Shazam
Inflation is not a tool. Inflation is the result of friction between demand and that demand being met.
Within our current economic framework, inflation is a given. I've already said that.
This is basic macro-econ. Why do I have to explain this to you?
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I understand basic macro-econ, you don't have to explain it to me. And I don't fully agree with your definition of inflation, the most widely taught definition (and the one I was taught) is that inflation is too much demand for money and not enough supply of it.
I never said inflation is a tool, I said it
provides a tool, there is a key difference there. It allows monetary policy to work, otherwise interest rate changes by central banks would never work. And to say that no economist is ok with inflation is a misstatement, most favour a low rate of inflation.