What Is Inflation? Clarifying and Justifying Rothbard's Definition

Austrian economists have debated issues of monetary theory and inflation extensively, but there is still no agreement on the definition inflation. Mises (1953, 240) defined as an increase in supply money not offset by demand for money, leading to a fall purchasing power (PPM). Rothbard (2009, 990) it fiduciary media, explicitly excluding increases stock specie. This article will argue that Rothbard’s most suitable economic discourse analysis can be generalized any market-selected money. By consistently applying method counterfactual reasoning (Hülsmann 2003), shown processes creation lead very different outcomes depending conditions production. The term “inflation” therefore best reserved production form bank credit expansion or fiat creation. These phenomena are external market, process redistribution they bring about runs counter structure income wealth would emerged their absence.