Inflation
| Inflation link (Idea) | |
|---|---|
| The increase in prices of goods and services in an economy |
Inflation is used both to refer to the increase of the money supply as well as to the rise in prices concomitant from this.
Note: There is a difference between increase of prices due to a shortage in supply (think crop failures) and increase in prices due to inflation, which is caused by monetary policy.
