>but for me there should be two types of inflations 1. a dilution of money
Outside of the fact that "some people say" (generally anti-fed types) that inflation is an increase in the money supply, why is it you think that?
In economics inflation has a specific definition: a general rise in the price level. It can be caused by all kinds of things. A rapid rise in the money supply is one. A breakdown in available supply is another.
>Let say a central bank injects a lot of new money, then all prices will be higher, but salary will be higher too
Maybe, maybe not. There's economic theory around the stickiness of wages; they don't react as quickly as the prices of goods. And that's understandable. It's easy to raise wages, but difficult to reduce them.
Outside of the fact that "some people say" (generally anti-fed types) that inflation is an increase in the money supply, why is it you think that?
In economics inflation has a specific definition: a general rise in the price level. It can be caused by all kinds of things. A rapid rise in the money supply is one. A breakdown in available supply is another.
>Let say a central bank injects a lot of new money, then all prices will be higher, but salary will be higher too
Maybe, maybe not. There's economic theory around the stickiness of wages; they don't react as quickly as the prices of goods. And that's understandable. It's easy to raise wages, but difficult to reduce them.