Hydraxon wrote:The 11% is a reference to credit securities issued by banks, so it is very different from inflation. it contributes, but not a factor 1 / 1.
In theory if the coefficient should be from 1 to 1 since the value of a currency is defined by the number of its banknotes and coins in circulation: you double their number, you reduce their value of "buying force" by 2 since everyone will have it, in theory twice as much !!
In practice, it is not because inflation is not calculated on all products (already not on real estate!) But only a "panache" of product whose, for a reason X or Y, the prices can vary for reasons other than value for money. In addition, trust money represents only a small part of the wealth.
So why do we learn at school that deflation (the opposite of inflation) is an extremely bad thing? Deflation, however, is the increase in purchasing power? But it's the cessation of consumption on credit!
I am wrong?