Monetary inflation is the increase in the price of goods and services caused by increases in the supply of money. Let’s look at the tiny nation of Pandora, tidying up all the building, cars, cows, and commodities, Pandora as a nation is worth 1,000 dollars and has 1,000 1-dollar bills in circulation. In Pandora, you [...]
Inflation is the increase in prices of goods or services over time. Dan just got paid and needs to buy groceries. Dan heads to grocery store and load up his car with items that he needs. These items cost Dan a total of 100 dollars. A year later, Dan returns to the groceries store with [...]