How are price increases indirectly related to inflation?

When the government creates more money than is required by economic growth to cover the excess spending, sooner or later the citizenry catches on and begins demanding higher prices for the goods and services they sell and more pay for their work. These price increases are often mistakenly labeled “inflation,” when in fact they are the effect of inflation, not its cause.

Back

Create a website or blog at WordPress.com

Up ↑