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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: NOW who wrote (95365)4/17/2001 5:29:00 PM
From: Ilaine  Read Replies (1) of 436258
 
>>increasing the monetary supply IS inflation<<

I don't think anyone adheres to this definition but Austrian economists, their followers, and gold bugs. For the rest of the world, inflation is an increase in the price of goods and services.

The price of money goes up like the price of anything else - there is greater demand than supply, and competitition between consumers bids the price up. If supply exceeded demand, the price would go down.
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