Inflation: what it means

Topics:
Inflation
Tags:
Currency & Foreign Exchange,
Finance,
Increase,
Inflation
Source:
libertyhaven

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Overview: INFLATION is one of the most abused and misused words in the English language - a word that is on everyone's lips, yet a word which few bother to define. It has several meanings and most people - even professional economists use them interchangeably. What is inflation? Its basic meaning is a swelling up, a blowing up, a puffing up, an increase, an expansion. in its economic sense the word is used with at least five different meanings: (1) Any increase at all in the supply of money (money in the broadest sense, which includes credit). (2) An increase in the supply of money (again in the broadest sense) that outruns the increase in the supply of goods. (3) An increase in the average level of prices - that is, any wide or general increase in prices. (4) An increase in the prices of widely used goods -such as steel or lumber or oil or foodstuffs. (5) Any boom or period of intense business activity or prosperity.

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Format: HTML | Date: Jan 2003

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