Money/inflation relation
Without some form of money would there be anything we could refer to as inflation; could the concept even exist?
80-89, M
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ArishMell · 70-79, M
Interesting question!
Inflation is an effect of the perceived value of goods and services represented by money, so it may well still exist in some form.
Without money society would have to cope with very clumsy and complicated bartering systems, but how would you equate, say, a car insurance policy with crate-fuls of groceries? Or reward individuals' employment?
At various points the apparent value of the insurance, the groceries and the wages will change, but without a neutral link between all (as currency is) adjusting any to compensate for the others would be impossible.
So whilst inflation as we know it, as the diminution of the face-value of currency, could not happen; it's quite possible some equivalent version would occur but would be very difficult and unwieldy, even impossible, to manage.
Inflation is an effect of the perceived value of goods and services represented by money, so it may well still exist in some form.
Without money society would have to cope with very clumsy and complicated bartering systems, but how would you equate, say, a car insurance policy with crate-fuls of groceries? Or reward individuals' employment?
At various points the apparent value of the insurance, the groceries and the wages will change, but without a neutral link between all (as currency is) adjusting any to compensate for the others would be impossible.
So whilst inflation as we know it, as the diminution of the face-value of currency, could not happen; it's quite possible some equivalent version would occur but would be very difficult and unwieldy, even impossible, to manage.
