The Effect of Inflation on the Economy

The Effect of Inflation on the Economy

Several definitions of inflation are in existence. Inflation is a situation in which there is price level or in which there would be such a persistent upward movement but for the presence of direct control over prices.Also, it is “a temporary increase” of the stream of money in circulation of a faster than that of the stream of goods and services on which this stream of money is spent and that money creation is inflationary when the additional purchasing power has no counter part in goods and services people wants to buy. [Read more…]