In the past few months, the cost of goods and services in the United States has been going up. Some people have called this "Shrinkflation." But what is it, and what can we do about it? The first thing to understand is that no, prices aren't actually going down.
Shrinkflation is the continuing increase the amount of money in the economy, which happens when the money supply continues to expand but the real economy is not growing at a pace to keep ut with it. The term shrinkflation was coined by Melton Friedman, the father of monetarism, even though he didn't use the term shrinkflation, he did use the term "money illusion."
Over the past few years, the cost of everyday goods and services have been rising faster than the rate of inflation. This phenomenon, known as Shrinkflation, has made it difficult for consumers to keep up with the cost of living. However, there is a way for consumers to reverse the effect of Shrinkflation. It involves finding the cause of Shrinkflation, and then fixing it.
During the recent years, there have been many changes in the way of food is packaged and served. Food sizes have been shrinking, and packaging has become more colorful and eye-catching. But there has also been an increase in the amount of food packaging used, which has had an impact on the amount of garbage that ends up in our landfills. The purpose of this article is to explore the consequences of Shrinkflation and the ways in which we can reverse the negative effects of this trend.
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Shrinkflation
and how to reverse its effect.
In the past few months, the cost of goods and services in the United States has been going up. Some people have called this "Shrinkflation." But what is it, and what can we do about it? The first thing to understand is that no, prices aren't actually going down.
Shrinkflation is the continuing increase the amount of money in the economy, which happens when the money supply continues to expand but the real economy is not growing at a pace to keep ut with it. The term shrinkflation was coined by Melton Friedman, the father of monetarism, even though he didn't use the term shrinkflation, he did use the term "money illusion."
Over the past few years, the cost of everyday goods and services have been rising faster than the rate of inflation. This phenomenon, known as Shrinkflation, has made it difficult for consumers to keep up with the cost of living. However, there is a way for consumers to reverse the effect of Shrinkflation. It involves finding the cause of Shrinkflation, and then fixing it.
During the recent years, there have been many changes in the way of food is packaged and served. Food sizes have been shrinking, and packaging has become more colorful and eye-catching. But there has also been an increase in the amount of food packaging used, which has had an impact on the amount of garbage that ends up in our landfills. The purpose of this article is to explore the consequences of Shrinkflation and the ways in which we can reverse the negative effects of this trend.
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