Question

what is inflation?

Answer 1

Inflation is rise in prices. Much like a baloon inflated when filled up with air similarly prices rise due to factors like excess money supply, excess demand, etc.

Answer 2

Inflation is what happens when there is too much money in the system chasing after too few goods and services.

The more money a person has, the more careless they become in how they spend it, and they are willing to ignore price. The more money a person has, the greater their demand becomes for good and services, which moves the equilibrium point between goods and services higher and higher.

Answer 3

inflation is the state in which the prices of comodities increase ,for eg:-food inflation.

Answer 4

the "state in which prices increase" is created because of inflation.

inflation is the reason; higher prices are the result.

And often times, people refer to the result of inflation.

Answer 5

http://online.wsj.com/article/SB10001424052748703730804576319173360183278.html

Answer 6

The economy 'inflates' because too much money enters into the market. In such situation, people will have more money to spend on commodities, which results in shortage of goods if not replenished. This creates an imbalance between the demand and supply. Higher demand for goods and its shortage, will result in high prices.

Answer 7

Mosat importantly, inflation is NOT a law of the universe or mechanics., but a personal decision made by management. Price increases are much more like likely to start with collusion among huge businesses using scarcity or FEAR of war or stock market traders going for fear as an excuse to jack up the price of a barrel which, all of the above, gets passed on to the little guys and smaller businesses who are then pressured to"keep up" with the cost of living. Beware of textbook regurgitations of inflation; it is not a physical law nor is economics a science but a study in human behavior in relation to the manmade (banking system) scare-city of money for interest payments.