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To: LindyBill who wrote (33627)6/29/1999 7:18:00 PM
From: kech  Read Replies (1) | Respond to of 152472
 
Lindy - Inflation refers to the rate of change of prices. (period)

It doesn't have to be caused by wage inflation or money supply. The theories of the causes of inflation (demand-pull, cost-push, wage increases, money supply increases etc) are many but are not tied to its definition.
Tom



To: LindyBill who wrote (33627)6/30/1999 12:07:00 AM
From: Mike Buckley  Respond to of 152472
 
Lindy,

INFLATION: A general rise in prices caused by the money supply increasing faster than productivity.

When people refer to wage inflation, I think they are implying that the general cause of productivity not keeping up with the money supply is increased wages (which is the same as lower productivity.)

--Mike Buckley


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