Sunday, June 11, 2006

Inflation : What the heck it is

Inflation has at least 8 distinctly different definitions that I can readily find, and probably a whole lot more that I have not yet found.Commonly Used Definitions
Decline in purchasing power of the currency held
Rising prices in general (essentially the same as #1 although some might disagree)
Rising consumer prices (CPI)
Rising producer prices (PPI)
Rising prices due to expansion of money supply
Rising prices due to expansion of money supply and credit
Expansion of money supply
Expansion of money supply and credit


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