Aug 26, 2020

Ludwig von Mises on the meaning of inflation

To avoid being blamed for the nefarious consequences of inflation, the government and its henchmen resort to a semantic trick. They try to change the meaning of the terms. They call “inflation” the inevitable consequence of inflation, namely, the rise in prices. They are anxious to relegate into oblivion the fact that this rise is produced by an increase in the amount of money and money substitutes. They never mention this increase. They put the responsibility for the rising cost of living on business. This is a classical case of the thief crying “catch the thief.” The government, which produced the inflation by multiplying the supply of money, incriminates the manufacturers and merchants and glories in the role of being a champion of low prices.

~ Ludwig von Mises

(Quote was referenced by Frank Shostak's December 6, 2016 article "Inflation is Not About Price Increases" and Kevin Duffy's March 4, 2006 article "Is the Inflation Camp on the Bubble?".)







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