The Trouble with Inflation25th February 2013

My Economics tutor’s favourite saying was “Inflation is the greatest social evil”. But when we talk about inflation, what do we really mean, and what do we really understand? What is inflation? We’ve been groomed to understand that inflation is the published measure of RPI or CPI. No, this is not inflation, but rising prices. These price rises are a consequence of inflation, which properly defined is an increase in the money supply. Changes in the quantity of money in existence