this post was submitted on 30 Dec 2024
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[–] [email protected] 1 points 5 months ago (1 children)

I don't think you necessarily need GDP growth to have a healthy small amount of inflation. Inflation has more to do with monetary supply than GDP growth.

[–] [email protected] 10 points 5 months ago

I'd argue that inflation is best viewed as a result of decisions made by business owners rather than a passive outcome of market forces. Businesses increase prices to boost profit margins, often beyond what is necessary to cover costs. While external conditions like monetary policy or wage increases may create an environment conducive to price hikes, the decision to raise prices ultimately lies with businesses.