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Monetary inflation is a sustained increase in the money supply of a country (or currency area). Depending on many factors, especially public expectations, the fundamental state and development of the economy, and the transmission mechanism, it is likely to result in price inflation, which is usually just called "inflation", which is a rise in the general level of prices of goods and services.
Inflation has been a feature of history during the entire period when money has been used as a means of payment. One of the earliest documented inflations occurred in Alexander the Great's empire 330 BCE. [26] Historically, when commodity money was used, periods of inflation and deflation would alternate depending on the condition of the ...
Usually the "dollarization" takes place in spite of all efforts of the government to prevent it by exchange controls, heavy fines and penalties. The government has thus to try to engineer a successful currency reform stabilizing the value of the money. If it does not succeed with this reform the substitution of the inflating by stable money ...
Inflation has been a constant for multiple decades. The Federal Reserve regularly prints new money, and the government regularly spends it, resulting in a continuous inflationary cycle. Inflation ...
Core inflation, which excludes volatile food and energy items and is watched more closely by the Federal Reserve because it reflects more sustainable trends, increased a modest 0.2% following four ...
Inflation impacts everyone by eroding the purchasing power of money. If you share Summers’s concerns, here are three strategies to guard against its impact. Real estate
The quantity theory of money (often abbreviated QTM) is a hypothesis within monetary economics which states that the general price level of goods and services is directly proportional to the amount of money in circulation (i.e., the money supply), and that the causality runs from money to prices. This implies that the theory potentially ...
John Cochrane argues that the key factor in when inflation gets out of control is when people lose confidence that a nation's debt will be repaid, and thus start to expect and prepare for inflation. [1] He also argues that for cases when large deficits are not accompanied by inflation, the deficits could have been preventing deflation. [1]