What Is Monetary Debasement Inflation?


Jake Morr


August 25, 2023

In the context of monetary debasement, inflation refers to the devaluation of currency due to an increase in the money supply. Like diluting a drink by adding more water, an influx of money in circulation can diminish its purchasing power. This often arises in systems like fractional reserve banking, where banks create new deposits when lending, leading to more money competing for the same goods and services, pushing prices up.


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