🚀 go-pugleaf

In article <2422@blue.cis.pitt.edu> wbdst+@pitt.edu (William B Dwinnell) writes:
>
>Charles:
>
>    You say that "inflation is *defined* as an increase in prices...", but
>you didn;t answer my question regarding the measurement of prices in
>money. Why? Does it really make any more sense to say that I purchase
>an autobmobile with money, than it does to say that the auto dealer 
>purchases my money with a car?  We generally measure such things in
>currency, for convenience's sake, but there is no mathmatical reason
>why we must, and that is what economics boils down to: mathematics.

well, i think i already said that if you want to trade cars for butter,
then it is possible that the number of pounds of butter per car could
increase over time. this would be comparable to inflation. you could
call this "butterflation" if you want, or whatever. :^)

but inflation is a specific term with a specific meaning. it refers
to a sustained rise in the *general* price level. and as another poster
pointed out, it is a macro phenomenon, not a micro one. inflation would
mean that the price of both cars *and* butter would rise. the comparison
is not between goods, but rather between goods and earning potential.
and we earn dollars and spend them on goods.

does that make more sense?

--
charles