Wednesday, December 29, 2010

Inflation and the Economy

Chart of M2 money velocity and employment-popu...Image via Wikipedia
You've heard the word inflation well I wanted to define it for you so you could have a clear understanding of what inflation is. In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time... according to the wikipedia definition.

Well as prices increase the money seems to decrease and that leaves a flagging economy with zero dollars for economic growth.

Economy revives but inflation, reforms sore points (2010 in ...

Economy revives but inflation, reforms s...The year evidently started on a positive note when...Stock markets also regained buoyancy, investments ..."India's growth-inflation dynamics are in contrast..."The economy is recovering rapidly ...


Inflation and Velocity of Money InflationData.net

Mostly it went into paper asset prices, not the real economy itself. This is why equity bulls had such a great year in 2009. But for the purposes of this discussion, we are talking about inflation in the real economy, not the paper ...


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