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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: mishedlo who wrote (75319)12/11/2006 4:54:17 PM
From: GST   of 110194
 
Ask your friend to provide a clear definition of inflation -- he can choose from on of the following three definitions (beginning with yours) or he can use his own words.

1. Inflation is an increase in money supply and credit.

2. Inflation is a persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.

3. Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.
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