It is an “objective” truth that Mario Draghi is semantically confused. He’s in the good news for bad reasons. I am disliking his “apoplithorismosphobia“. He’s masquerading the economics of deflation. His European Central Bank (ECB) is now all set to inflate the so-called disinflated European economy. Many bankers and voters fail to realize with their real eyes that inflation is caused due to “fractional reserve system”.
The truth is simple, but unfortunately these real lies are not realized. There is nowadays a very reprehensible, even dangerous, semantic confusion that makes it extremely difficult for the non-expert to grasp the true state of affairs. Inflation, as this term was always used everywhere and especially in any country, means increasing the quantity of money and bank notes in circulation and the quantity of bank deposits subject to check.
But, people, today, use the term “inflation” to refer to the phenomenon that is an inevitable consequence of inflation, that is the tendency of all prices and wage rates to rise. The result of this deplorable confusion is that there is no term left to signify the cause of this rise in prices and wages. There is no longer any word available to signify the phenomenon that has been, up to now, called inflation. It follows that nobody cares about inflation in the traditional sense of the term.
As you cannot talk about something that has no name, you cannot fight it. Those who pretend to fight inflation are in fact only fighting what is the inevitable consequence of inflation, rising prices. Their ventures are doomed to failure because they do not attack the root of the evil. They try to keep prices low, while firmly committed to a policy of increasing the quantity of money that must necessarily make them soar.
As long as this technological confusion is not entirely wiped out, there cannot be any question of stopping inflation.
How inflation helps rich people, by Jörg Guido Hülsmann
Inflation, by Ludwig von Mises