What is inflation (economy)?

Question

i just heard that word about the economy...what does it mean?

Answer 1

monetary inflation is when currency becomes less valuable. there are a number of causes for this, from printing to much money to your country not producing as many valued goods as others.

regular inflation is when the price of goods and services increase over time.

Answer 2

Inflation was more likely caused because by the amount of money that does not exist that is being spent and the amount of debt and the amount of money printing.

It has just got so out of hand. I will be checking for answers also as I am also confused. This was my answer when I asked someone.

Go to

www.infowars.com

some more juicey stuff the Government does not tell us.  

Answer 3

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Investopedia Says:

As inflation rises, every dollar will buy a smaller percentage of a good. For example, if the inflation rate is 2%, then a $1 pack of gum will cost $1.02 in a year.

Most countries' central banks will try to sustain an inflation rate of 2-3%.

you can find much more info on inflation at the site

http://www.answers.com/inflation

Answer 4

Price inflation, usually, which means that the same thing that used to cost $1 now costs more than $1.

The prices of things tend to increase in terms of a unit of currency over time.

Answer 5

Inflation is the overall increase in prices.  It is not inevitable, though some may believe it is.  The general cause of inflation is printing too much money, but lowering interest rates when aggregate demand is already sufficient will also cause inflation.  Inflation means that dollars, in general, are less valuable than they were before.  It is false, however, to say inflation causes all prices to rise.  This isn't true.  Some prices may fall during inflation...just less than other prices rise.  But, inflation's cost during moderate inflation are not severe.  For instance, there are 3 known effects of inflation:  menu cost, increased variability of relative prices and shoe-leather cost.  A complete explanation of these terms may be beyond the scope of your question.  But, if you want to know what those are, I could answer that in another question.