There seems to be a lot of confusion today about inflation. Pick up the paper or follow an internet site and you will read that the inflation rate this year is expected to be 2% or 3%. What they really mean is that prices are expected to rise 2% or 3%.
But is that inflation?
Inflation is an increase in the money supply. So why is the difference in definition critical? Prices rise because of inflation; they are the result of inflation but they are not inflation, nor are they the cause of inflation.This is important because the government is the […]
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