4 ms·
Inflation is an expansion in the money supply, such as new discoveries of gold or or printing paper money or creating credit. A baker would say he will 'raise'
by yyy888sss 4y ago
Inflation is an expansion in the money supply, such as new discoveries of gold or or printing paper money or creating credit. A baker would say he will 'raise' or 'lower' the price of his bread, not 'inflate' it. Defining inflation by the CPI or a similar measure is like defining the rain as a "increase in height of a river". It is the rain that CAUSES the rise in the river, and inflation CAUSES a general rise in prices.