inflation

How far can you stretch a dollar? This is the age-old question. The value of a dollar: Always the sobering 'Yin' to the raging 'Yang' of services.

Inflation is a very complicated beast, but it is generally considered by most people to be defined as a rise in the price of goods and services. Although, the Austrian economists define it as the increase in the supply of money.


Inflation has also been called the "Eroder of Purchasing Power." The Inflation Rate (percentage change in a General Price Index over time) is the main indicator of inflation.

The bad side of price inflation is that there is a very real decrease in the value of money. Also, it tends to discourage people to invest. The good things that come from inflation include softening of economic recessions and debt relief by reducing the real level of debt.


Inflation is caused by many, many factors, but it is generally caused when the money supply grows faster than the rate of economic growth. Believe it or not, most economists favor a low, steady rate of inflation as opposed to zero or negative inflation. It helps reduce recessions and stabilize the economy.

Bloggers speaking about inflation can be found at sites like mint and mises.

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Original Technorati articles tagged “inflation”

• in Finance
  Hedge Against Inflation with Real Asset Investments
  If you are concerned that Quantitative Easing poses future inflationary risks then consider hedging with real assets
  by greenworldbvi / on Apr 16, 2012
• in Business
  Inflation Or Deflation. Which Will Carry The Day?
  The debate over inflationary vs. deflationary forces marches on.
  by leovou / on Oct 14, 2011
• in Politics
  How Much is Gold's Value REALLY Increasing?
  A look at the value of gold compared to another common commodity.
  by lukestanek / on Sep 6, 2011

Latest blogosphere posts tagged “inflation”

 

• Energy-Price Drop to Show Up in Data

  
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• iShares: Time to Skip the TIPS?

  
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• Aussie Suffers as RBA Lowers Inflation Outlook

  
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• Taiwan c.bank says won’t follow S.Korea’s rate cut for now

  
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  1 week ago

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