What is Inflation and Should You Be Worried?
Inflation is the decrease in purchasing power—or value—of money.
The exact mechanisms of inflation can be confusing, and there's frequent debate about how it really works. Let's discuss three popular mechanisms for explaining inflation.
Occurs when the rise in demand for goods and services is greater than the rise in the supply of those goods and services.
Increasing costs of production force producers to increase their prices, regardless of the consumers’ demand.
Built-in inflation—is more about expectations than reality.
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