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 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
• in Finance
  Should the US Return to a Gold Standard?
  Can the US save the Dollar by bringing back the gold standard?
  by thegreenage / on Aug 14, 2011

Latest blogosphere posts tagged “inflation”

 

• Brazil Economists Lower 2012 Inflation Outlook

  
  Benzinga — Authority: 515
  Brazilian financial market analysts and economists lowered their estimates for 2012 inflation, according to a survey by the Central Bank of Brazil. Economists now project the countrys inflation to average 5.28%, versus a target of 5.29% a week earlier.
  14 hours ago

• Overseas investors bullish, pump in over $1.78 bn

  
  Thaindian News — Authority: 534
  Mumbai, Jan 29 (IANS) Foreign institutional investors (FIIs) have been bullish over Indian equities markets since 2012 opened as declining inflation and a clear signal from the Reserve Bank of India (RBI) that interest rates will be cut enthused business confidence.According to data available with the Securities and ...
  1 day ago

• Super Inflation

  
  Ask MetaFilter — Authority: 647
  Why did inflation increase so dramatically in most Western economies in 1975? Why did inflation remain at 10-15% levels around the world through the recessions of the late 1970s and only return to "normal" 3-5% levels in the 1983 recession?
  1 day ago

• Fed’s zero interest rate policy could affect GDP and gold’s price

  
  Gold Silver Websites — Authority: 418
  Fed’s zero interest rate policy could affect GDP and gold’s price Both the US Federal Reserve and the European Central Bank are now offering limitless quantities of new money – the ECB to support the banks, and the Fed for reasons (despite explanations) that are not entirely clear. The Fed in its press release ...
  2 days ago

• India’s economic slowdown a stain on 2011

  
  East Asia Forum — Authority: 547
  Author: M. Govinda Rao, NIPFP India’s economy was one of the earliest to stage a turnaround after the global financial crisis. The decisions taken in early 2008 to increase public-sector wages, forgive loans for farmers who had borrowed from the banks, and massively expand the rural-employment guarantee scheme ...
  3 days ago

• Kuwait 2011 inflation at 3-year high, seen subsiding

  
  Dubai Business | Kippreport — Authority: 505
  Kuwait’s average inflation climbed to a three-year high of 4.8 percent in 2011, in line with analysts’ forecasts, data showed, but price pressures are expected to subside this year. Consumer price growth in the OPEC member, which was spared the unrest sweeping the Middle East and North Africa last year apart from ...
  4 days ago

• Intentional Ignorance By The Fed?

  
  SeekingAlpha.com: Home Page — Authority: 548
  By The Inflation Trader : I want to state clearly at the outset that no one at the Fed was compensated in any way by me or my company for their words and deeds of Wednesday. While I am grateful at their gracious underwriting of the inflation biz, I neither expected it nor provoked it nor, to be honest, welcome the ...
  4 days ago

• The ‘QE-exit’ inflation paradox

  
  FT Alphaville — Authority: 687
  RBC Capital Markets takes an interesting take on the Fed’s newly released Fed Funds projections. First the projections, which look like this: As the note under the chart declares,...
  4 days ago

• IMF Calls for Increased Funding

  
  Spanish news — Authority: 107
  The Managing Director of the International Monetary Fund (IMF), Christine Lagarde, has called to “increase” but not “double” the European bailout fund, so that countries like Spain and Italy are not drawn into a liquidity crisis. At a conference in Berlin before the German Society for Foreign Policy, Lagarde ...
  4 days ago

• FOMC Holds Rate at 0-0.25%, Announces Inflation Target, Releases Inaugural Fed Forecasts

  
  Central Bank News — Authority: 417
  The  US Federal Open Market Committee  (FOMC) kept the fed funds rate steady at 0 to 0.25 percent. The Fed said: "To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee expects to maintain a highly accommodative stance ...
  4 days ago

• Guest Post: 7 Reasons Why A Credit Card Might Save Your Life

  
  7 Reasons — Authority: 94
  1.  It Just Might Save Your Marriage Someday. Women love to shop. It is part of their genetic makeup. If you are married to a woman who thrives on shopping, and you deny her the fulfillment of this instinctive, natural urge, you could very well end up causing very real marital problems. You know the old saying ...
  5 days ago

• The Cost Of Technology Over The Decades

  
  Nicenfunny — Authority: 119
  source . [IMG: http://dailyinfographic.com/wp-content/uploads/2012/01/cost-of-technology.jpg]
  6 days ago

• Maybe Market Silence Really Is Golden

  
  SeekingAlpha.com: Home Page — Authority: 548
  By The Inflation Trader : It wasn’t the slowest day of the year so far, but that is only because of the extraordinarily weak start we have had to the year in terms of market volumes. I will have a little more to say about that, later, but for comparison Monday’s volume was lower than any day in the first ...
  6 days ago

• Chinese New Year 2012 and Thoughts on Financial Planning

  
  Investing In Passive Income Assets — Authority: 405
  During the Chinese New Year period, I managed to meet up with quite a number of friends. Most of them seem to be doing fairly well, with fancy cars and more to show. However, on further discussion, I found out that most of them have not done any financial planning. Either they do not understand [...]
  6 days ago

• Markets rise on CRR cut, Sensex closes tad below 17,000 (Third Lead)

  
  Thaindian News — Authority: 534
  Mumbai, Jan 24 (IANS) Indian equities markets rose Tuesday with investors cheering an unexpected cut in the cash reserve ratio (CRR) by the Reserve Bank of India. A benchmark index, however, slipped from the day’s high to close just below the 17,000-mark.After nearly two years of tight check on money supply to [...]
  6 days ago

• India’s central bank infuses more money into system (Lead)

  
  Thaindian News — Authority: 534
  Mumbai, Jan 24 (IANS) After keeping money supply under a tight leash for nearly two years to tame galloping inflation, India’s central bank Tuesday took steps to infuse more liquidity into the system by reducing a key rate that would help the industry get out of the current downturn.The cash reserve ratio [...]
  6 days ago

• Sensex crosses 17,000-mark, banking stocks lead (Second Lead)

  
  Thaindian News — Authority: 534
  Mumbai, Jan 24 (IANS) A benchmark index for Indian equities markets soared past the 17,000-mark as markets cheered an unexpected cut in the cash reserve ratio (CRR) by the Reserve Bank of India Tuesday. Banking stocks led the gainers list.After nearly two years of tight check on money supply to tame inflation, [...]
  6 days ago

• Small business confidence nosedives in Q4 2011

  
  Freelance Advisor — Authority: 414
  Accordingly to the quarterly yardstick of freelancer, contractor and small business confidence, the Federation of Small Business ‘Voice of Small Business index, the mood of the UKs small firms crashed in the latter part of 2011 due to a combination of high inflation, rising utilities bills and reduced consumer ...
  1 week ago

• Fed Inflation-Unemployment Mandate Shows…

  
  Red State Politics — Authority: 140
  Bloomberg Fed Inflation-Unemployment Mandate Shows Bernankes Model Better in Crisis Bloomberg In September, US policy makers decided to replace $ 400 billion of short-term debt in their portfolio with longer-term Treasuries, in an effort to lower borrowing costs even more and combat rising risks ...
  1 week ago

• Rate cuts unlikely as RBI reviews policy this week

  
  Thaindian News — Authority: 534
  Mumbai Jan 22 (IANS) India Inc’s hopes of a rate cut may not happen, atleast this time, even though inflation, the main worry of the Reserve Bank of India (RBI), has shown a significant decline.The RBI will conduct the third quarter review of the monetary policy on Tuesday.As per latest data, India’s annual [...]
  1 week ago

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