🚀 go-pugleaf

In article <1993Jan21.211300.8065@athena.mit.edu> cmk@athena.mit.edu (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.





-- 
 Sung Hyun Kim    kim_sh@jhunix.hcf.jhu.edu : Economics, Johns Hopkins U.