In the last post I talked about inflation and how it represents a generalized rise in prices and a permanent decrease in purchasing power. I know I mostly focused back then on inflation caused by the growth of the money supply, but inflation actually has a lot of possible mechanisms. In this post I’m trying to go through all of them and explain them. As a basic rule, inflation caused by printing money is not the main cause of inflation. Naturally, inflation appears when there

Hi there, my loves, how are you doing? I hope this post finds you well in the future. I'm curious what age you'll be when you read it. Today I want to talk to you about money. And no, this isn't a conversation about how much money we're leaving you as inheritance, but about the very notion of money. You see, your mother and I were born in Romania, to parents who were never encouraged to understand the world around them. In a communist state, that was simply normal. I don't th