A general economic meaning of inflation is "a general increase in prices and fall in the purchasing value of money." Maybe Mises calls inflation an increase in the money supply, but that is not the generally understood or used meaning of the term. An increase in the money supply often may (but not necessarily) lead to inflation. But they are not necessarily the same.
Inflation is actually a very difficult thing to be able to define precisely and unambiguously. I would say in pure mathematical terms it's almost a meaningless concept (unless we're talking about some specifically defined form of inflation). And yet inflation is of intense importance to economics. It's just somewhat difficult to define absolutely quantitatively.
Depends. If the the increase in money supply goes to someone who takes the extra dollars and buries it in his back yard, there is no effective increase in the money supply used in circulation, and a dollar will still buy 10 widgets. Money supply =/= inflation.
So what?? That fed does lots of things especially with emergency powers but we are quite happy as long as they keep inflation at 0%
70% of GDP is spending. Spending less = lower growth GDP. Which is basically what we've seen happening over the past 30 years in general. How is that good?
Exactly. Folks who seem to think prices falling would be a good thing don't stop to consider that included in the prices falling are the price of labor, i.e. wages that are paid to working people, which would also fall with deflation, all other things being equal.
0% or 2% is about the same for purposes of this discussion. Also they aim hi to avoid deflation so actually are aiming at 0%. To subtle for you?
When wages and profits shrink with deflation, the dollar cost of repaying a loan because more expensive. Opposite happens with inflation.
Then foreign governments like Russia, China, and South Africa would control our currency, as would any other governement or person speculating in the gold or silver markets. Why anyone would want to give that kind of power over our economy to our adversaries is baffling to me.
Dumb luck but you may have gotten one right Huge deficits with China would cause all of our gold to go to China. It would create huge panic and depression.
Are you able to see the fallacy in people spending more of their money because it is devaluing in value? Let's look at it this way: Inflation doesn't make people more likely to spend, it makes them less likely to save/invest (to some degree, we can argue about to what extent that's true). Do you think it's a good thing that people spend their money rather than saving/investing it?
But your income is 2x higher too. So the net effect is no change. You're still paying 10% tax. There is no relative greater transfer than before.
No it didn't, because the 5% increase to keep up with inflation restored the government's purchasing power. It's easy to understand, it is your premise that is wrong. You're again not thinking relatively. It's not a relative tax increase because there is a relative increase in income as well.
No, I think they intentionally desire a positive rate, maybe 0.5 to 1.7%. They don't want 0%. (Not saying that's good, just saying that's what they think is good)
The government does not know whether people should spend or save their money so government policy must not encourage either
And the tax rate is always adjusted so over the long term the government does not get more or less unless nobody is paying attention
So what it has nothing to do with our subject. You are trying to change the subject to something you think you know about