• jj4211@lemmy.world
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    1 year ago

    Note that a critical part of that equation is that wages are included in the inflationary trend.

    But other than that explicit detail, that’s spot on. Ultimately money is a “trick” we use to influence our productive behavior. So a slightly creeping number works best to make the “money” move instead of sit still, and the whole point of the mathematical model is that the things need to move around.