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DEFINITION

Inflation is an increase in the price of goods and services, and a decrease in purchasing power. 

TYPES OF INFLATION

Demand-pull effect: an increase in the supply of money and credit by monetary authorities, like the central bank. This leads to increased demand for good and services, and thus, increased prices. 

Cost-push: when there is an increase in the supply of money, the cost of production increases, leading to high consumer prices. 

Built in inflation: People expect prices to continue to rise in the future, and as such, expect their wages to rise to maintain their standard of living. 

WHAT DOES INFLATION SAY ABOUT THE NATURE OF BEING?

1. Human being are never satisfied. We are constantly in search of more.

2. Cause and Effect seems to be in-built into the fabric of reality.