Inflation
Inflation is a general increase in the money supply.[1]
Definition of inflation
There is a certain confusion about the meaning of this term. In the popular definition, inflation is an ongoing rise in the general level of prices.[2]
Prices do not stay constant, they are always rising and declining. An increase in the money supply - inflation, properly defined - has a tendency to raise them in general.[3] It is also impossible to establish an average of prices of different goods and services.[1]
Dangers of inflation
- Main article: For and against paper money
See also
- Wikipedia page on Inflation
- Inflation from The Concise Encyclopedia of Economics
- What You Should Know About Inflation, Henry Hazlitt
References
- ↑ 1.0 1.1 Frank Shostak. "Defining Inflation", Mises Institute, posted on 2002-06-03, referenced 2009-05-26.
- ↑ Lawrence H. White. "Inflation", The Concise Encyclopedia of Economics, referenced 2009-05-26.
- ↑ Murray N. Rothbard. "11. Binary Intervention: Inflation and Business Cycles", Chapter 12—The Economics of Violent Intervention in the Market, Man, Economy and State, online version, referenced 2009-05-26.