Quote:
Originally Posted by jamesqf
But you could still see higher prices without inflation, if they're due to scarcity. Say you're living on Easter Island during the last years of the collapse...
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Sorry, but that is incorrect.
Inflation is the reduction in purchasing power of a currency and is caused by an imbalance of money supply and the general level of goods and services. Whether it is caused by an increasing money supply or by goods and services becoming more scarce, it's still inflation.
If you have a scarcity of one type of goods, but general prices on all goods and services as a whole are generally stable, then it's not inflation. When you have higher prices in general, then you have inflation.