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Can someone explain what inflation means?
about 1 year ago
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Inflation is basically the rise of the average prices of goods and services over a specific time period. This means that the purchasing power of each unit of currency declines. BabyPips.com's forexpedia has a nice definition of inflation. Check it out!
about 1 year ago
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Inflation refers to the change in price levels for a particular period of time. Rising inflation means prices are increasing while falling inflation means prices are decreasing. Central banks typically look at inflation to determine what kind of monetary policy they'd implement.
about 1 year ago
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Yes inflation is the name for the symptom of rising prices of items.
Another way to put it is that inflation is ACTUALLY the DEVALUATION of Currency (Money). this basically started when the dollar was separated from Gold Standard. this was done in part to allow banks to make money out of nothing. which is bad because it means that money is basically worthless. and only has value as long as the economy is going ok.
On Gold standard a bank note represented an amount of gold. so Gold (and all assets.) didnt increase in value. because the gold was valuable and the note was attached to it. in 1971 Nixon Severed the Gold standard and created Fiat money. which is basically ink and paper.
Read more in "The Guide to Buying Gold and Silver" and i also recommend "The Creature from Jekyll Island" on a simular subject of the Federal Bank, and how it was Created by private bankers (not the Government.)
about 1 year ago
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