- Inflation is the rise of the general prices of a economy in a period of time.
- If the inflation is positive, the general prices increases and each unity of the currency buy few products and services.
- The opposite of inflation is deflation.
- The general prices of products and services decreases.
- Long period of sustained inflation is correlated with money supply growing rate higher than the economy growth rate.
What is better: high or low inflation?
What are the second order effects of a high inflation? And a deflation?
Why inflation increases when the money supply growing rate is higher than the economy growth rate?
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