New answers tagged

1

Yes, I think he was referencing impossibility or at least paradox. Jevons was an English mathematician and logician. I believe he references De Morgan later as support for this quote. De Morgan had written a book on mathematical paradoxes. Many paradoxes of specie and money, in general, were being explored at that time. He references some of them. Let me ...


0

Not only was Jevons not looking at the same science, he was using perpetual motion as a metaphor of a difficult quest. By currency Jevons seems obviously to mean simply wealth, in an archaic dialect of the United States. He is simply saying in a belabored way, wealth is hard to achieve the way alchemists could not find gold, or the way perpetual motion was a ...


3

Venezuela changed its currency 4 times since 2008. VEB, VES, VEF plus another denomination with a change in iso code mentioned in the other answer. Changing a currency changes nothing. Changing behaviour would. However, if your child didn't behave for years, you don't trust your loved one just because it put on a fresh pair of pants. Same for countries. What ...


5

Introducing new currency won't help if the underlaying problems are not addressed. In fact as reported by AlJazeera: Venezuela introduces new currency, drops six zeros So they are already introducing new currency, but this won't really stop inflation unless the underlaying issues are addressed. Introducing new currency just 'resets' the number of zeros on ...


1

This paper looks relevant: https://www.sciencedirect.com/science/article/abs/pii/0164070495801014 Abstract "This paper shows that the collapse of the paper money system of the Ming dynasty (1368–1644) was not due to a runway printing press but due to the existence of competing metallic currencies, which increased the interest elasticity of paper money ...


0

Everyone is talking macro and like an educated economist. But I read this question as, if the idea of inflation and macro economics just disappeared from everyone's head, would inflation still happen... The answer is yes. As a restaurant owner if the price of ingredients and supplies you need go up, you increase the price of your food to stay afloat and/or ...


0

Suppose you have some good or service that multiple people want. You have been selling it for 10$ up until now, but you are selling out all of the time. You are getting a new supply for this week, and someone offers you 15$ for it. They seem legit. Are you tempted? Meanwhile, the stuff you need to make this good or service -- labor, food, equipment, etc --...


22

Yes and there is a real-world historical example. Inflation is the term given to a natural phenomena where an overabundance of resources in human societies leads to the devaluation of such a resource and is applied especially to a resource used as a common medium of trade (money). Long before the term inflation existed and long before (modern) economists ...


4

Indirect "knowing" Explicit and direct publication of money supply information brings that information to the public quickly. However, in the absence of that, and with news social media not talking about that, indirect information about money supply spreads while the money supply is being used - trades being made, and the behavior of other ...


2

The answer is yes. I agree with AKdemy's answer but I think it can be expressed more succinctly: Shopkeepers/producers raise and lower prices for a whole variety of different reasons, in amongst these will be the rate of sale of their produce. So if products are flying off the shelves and the stock rooms are empty then this makes it more likely rational ...


43

In this case, I think it is best explained without any economics jargon. If your thought experiment is taken to the extreme and no one knows about the money, it would literally imply that the money that was printed never went into circulation. In this scenario, nothing happens. However, usually someone doesn't print money just to store it in a vault or use ...


2

Yes inflation can occur even if people do not talk about it. Inflation is positive growth in price level that can happen for multiple reasons. Price level in the economy is determined by the money market. A simplistic model of money market you would find in 101 textbook is given by (see Blanchard et al Macroeconomics): $$M/P = L(Y,i)\implies P=M/L(Y,i)$$ ...


Top 50 recent answers are included