The two concepts are wroth studying extensively because it determines our success in labour market. No one prays for deflation but it is inevitable so all we need to do is to be vigilant and study the labour market, then will be go home smiling all the way.

I think the best way  to address Inflation is to reduce money supply and FED has already taken a strong step in this direction by increasing interest rate by 0.25% but is negative for stock market and economic growth. The second reason is sky rocking price of crude oil which has increased inflation all over the world, i am quite sure it will come down if Ukraine issue is resolved and a Nuclear deal is signed between USA and Iran that  will quickly bring down the crude oil price.

That is well stated - I liked how you have made a combination of Inflationary - deflation. Although inflations plaguing the entire world.
Everyone is in serious trouble in particular the people of underdeveloped country. The after affect of COVID are now obvious - may this crisis end soon we all see yet  a progressive economy. Amen

Economics is a very young field and sometimes are even self fulfilling prophecy. Even keysian economics used to be all about taxation and less on supply.

Always be wary of Austrian economists, because they are priori thinking based, while Keysians and Monetarists etc are far more scientific and data driven with math models.
The latter can be broken down and analyzed, the former is basically theories. That also makes Austrian theories easier to sell, but they have been extremely poor at predicting any recession for example.
Some part of The Austrian Theory of the Business Cycle are pretty easy to disagree with too, they said business can handle fluctuations but not gov induced credit expansion, which is simply wrong because everyone made decision based on prediction of future rate. If anything, it is even more predictable. Government policy is largely very predictable, even more so than volatility of gold supply.

At the end, central banks are focused on factors outside money. The economic growth, employment rate and inflation. i.e. the well functioning of the society (in economic terms)
Inflation will always be here to stay, but it isn't difficult to build wealth because of this.

Exactly, if you are like the majority of people, you don't own assets that produce enough passive income to sustain your lifestyle. Thus, the only options you have left is to either put in more hours --> get a second job/side-hustle or upskill yourself to secure a better paid position be it at the same workplace or in another company.

Like Buffett said - in a inflationary environment "The best thing you can do is to be exceptionally good at something."
Of course we can't just say hocus-pocus and we become the best in the field, but you can always start working to attain that.

It is possible to address inflation issue and bring it down by money tightening policy. This is what FED is doing and recent data of CPI reflects that this policy is working as CPI is on decline and may decline further as crude prices are also falling which might help to stop further increase in interest rate . The best hedge against inflation is Bitcoin which can not be printed more than 21 Million.

An easy-to-understand explanation. In the last sentence, the macroeconomic is mentioned so I have a wonder that these factors like disease can affect in supply, demand of crypto?

Perfectly explanatory post!

I would like to add just a little info that helped me a lot to frame out the analytic functioning of inflation/deflation through monetary policy, that is the notion provided by the Quantity theory of money.

It basically relies on a simple mathematical law, that in its exemplified form is known as equation of exchange:




Where

M is the money circulating supply,
V is the velocity of money, or the frequency of transactions in a given period of time(basically how fast money flows in the economy),
P is the average price level,
Q is the real value of goods.

The left-hand member of the equation is the money supply (MS = MxV), while the right-handed one is the money demand (MD = PxQ) and the relation between the two basically states that in an economy all the actors cannot spend more than how much all the actors produce (gain).
Note that MD can also be referred to as the nominal GDP.

Assuming V and Q as constants, (the velocity of circulation of a simple medium of exchange V depends on consumers habits, and the value of goods Q is produced in a situation of full employment -Fisher- and objective), if the monetary policy maker decides to inject money in the system, alias printing new money (increasing the value of M value in the equation), in order to maintain the law (equation) prices must necessarily increase proportionally (Increasing the P value in the equation).

This increase of P is what we call inflation.

If instead of increasing M, we decrease it (destroy money), in order to keep the law valid prices (P) must decrease as well, proportionally. That is what we call deflation.

This model gives an analytic reason on why abundance of money leads to inflation, while scarcity leads to deflation, and why Bitcoin tends to gain purchasing power (facing decreasing supply over time, thus decreasing purchasing price levels for goods, that is to say higher value for itself), while FIATs tends to loose it (facing increasing supply, thus increasing price levels for goods, or lower value for itself).

these two things, namely inflation and deflation are indeed commonplace in a process of running an economy. and even a controlled inflation is also needed in a process of running an economy and market flows. so it can be said that inflation is also divided into two parts. namely controlled inflation and uncontrolled inflation. although today some people mistakenly think that the word inflation is a bad thing. whereas inflation can not always be considered bad if it is controlled inflation. and what should be worried and considered bad is uncontrolled inflation. as is currently the case. because uncontrolled inflation indicates the economy is not doing well (economic crisis). and many factors that cause inflation to become out of control. and it's been mentioned a lot in this thread. Inflation and deflation are something that continues to happen in an economy.

but the types and levels that distinguish them.
Such as the type of inflation that is still under control (at low to medium levels), and the type of inflation that has started to get out of control which continues to increase rapidly (usually called the heavy inflation level - hyperinflation).

Well said. Inflation is the result of increase in money supply but it is not always bad because in inflationary situation people spend money to buy good and services which creates jobs and stimulates growth in economy while deflation means no growth in economy, that is why governments reduce interest rates in deflationary situation to increase money supply to stimulate growth.

The bottom line is inflation at reasonable level is not so bad but when it goes extremely high ( in 2 digits or above like in Turkey & many other developing countries inflation is 70%) then it becomes difficult to buy food and energy for common people of the country.