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Inflation
* adds noise to economic transactions and calculations making the economy less efficient.
* affects all three functions of money.
* affects different people differently
  - in different ways
  - everyone
  - the income, sales and corporate income tax bases continuously
* alone steals the value of money put in a bank or invested in securities with fixed yields.
* also accompanies transitions in technology
  - allows debts to be paid off quickly with cheap dollars
  - does long-term damage to the economy
  - explains the overall uniformity of the universe
  - helps with the problem of multiple dimensions in Superstring theories
  - interacts with the tax code to create large distortions in economic decision making
  - interferes with the efficient allocation of resources by confusing price signals
  - occurs when production costs increase, or the Canadian dollar is falling
  - pushes up the nominal value of families' incomes
  - solves the flatness problem because of the exponential growth
  - tends to benefit people who owe money and hurt people who lend it
* always works to the disadvantage of the poor in India, who have fixed incomes.
* appears to be higher during the first half of the economic cycle.
* becomes economic issues
* becomes major economic issues
* begins when cold air is pushed into the balloon envelope with a portable blower.
* big reason that lies behind some poor families' being poor.
* brings adverse effects on efficiency and on long term growth.
* can also be low because there is little dynamism in the economy
  - play a large role in interest rates
  - create both capital gains and losses
  - decrease the production of goods and services
  - destroy confidence and ruin an economy
* can have a distortionary effect on ratios
  - serious impact on income over time
  - wide-ranging effects
  - never be an instrument of fiscal policy over a long period of time
  - wipe out the results of expansionary economic policy
* causes an increase in the general price level of goods and services
  - prices to increase every year
  - tax rates to rise automatically
  - the purchasing power of money to differ from one time to another
* classic economic sin.
* comes into consideration to the degree that it affects production and distribution.
* compounds the problem of falling commodity prices.
* concern, led by the weak euro and rising oil prices.
* condition where the price of everything else goes up as the dollar goes down.
* confers no benefit to society, but it imposes several real costs.
* continuous decline in the value of money.
* corresponds to a continuous price increase.
* cuts into one's buying power year after year.
* destroys faith in government and sets social classes against each other.
* direct result of the monetary or fiscal irresponsibility of government.
* disguises bad economic performance of firms and of the economy as a whole.
* does affect the prices of journals.
* eats away the value of a bond's fixed payment over time
  - into profits and weakens the market due to higher borrowing costs
* effects all products and services.
* equals rising interest rates.
* erodes a dollar's buying power over time.
* erodes the purchasing power of income and investments
  - retirees
* erodes the value of bonds' fixed interest payments
  - money so the money received later is worth less
  - stocks and other investments
* feeds on itself via peoples' expectations.
* fraud against the inhabitants of Canada.
* general increase in the level of prices throughout the economy
  - prices of goods and services
* general rise in prices across the economy
  - the price level
  - trend of increasing prices
* grows every day.
* has nearly equal impacts on spending and revenues
  - nothing to do with corporate governance
  - problems
* hurts people on fixed-incomes because it means they can buy less.
* increases expenditures.
* increases the effective tax rate to firms and individuals in many ways
  - nominal value of assets, leading to an overstatement of the real gain
  - uncertainty
* indexed bonds do have a role to play in a portfolio
  - their work in a number of ways
* involves too much currency in circulation.
* is always an epidemic when fiat currency is used
  - and everywhere a monetary phenomenon
  - bad for people with money because their money becomes less valuable
* is an economic device by which each man can make more than the next
  - whereby each person earns more than the next
  - given
  - essential part of calculating accurate capital budgets
  - ever-present danger, particularly wage inflation
  - important aspect in the economy of any country
* is an increase in price without a corresponding increase in value
  - the average price level in the economy
* is an increase in the general level of prices, as measured by some price index
  - price level of the economy
  - overall price level of goods and services over a certain period
  - quantity of money and credit
  - indirect tax imposed by government
  - invisible form of taxation that irresponsible governments inflict on their citizens
  - ongoing increase in the average prices of most goods and services
  - overall rise in the level of prices throughout the economy
  - another important indicator of economic performance
* is bad for bonds because it makes a bond's fixed interest payment less valuable
  - the poor, everywhere
* is caused by a rise in the general price level on the market
  - an excess supply of money
* is considered just because it favors debtors at the expense of creditors
  - synonymous with escalation in trade publications
  - constituted about two-thirds by wages
  - created by too much money chasing too few goods
  - currently a critical problem for economic policy
* is determined by monetary policy
  - the angle of the impact and the vehicle's deceleration
  - difficult for people on fixed incomes
  - driven by a quantum field that generates a kind of antigravity, bloating space
  - everywhere and always a monetary phenomenon
  - explained in terms of monetary phenomenon
  - explosions
  - finance
  - how much the cost of goods increases over time
  - kept artificially low by mopping up currency from the market with government bonds
  - low, as is the cost of borrowing money
  - measured as a percentage change in the price index
* is measured by indexes of consumer and of wholesale prices
  - the percentage change in prices level
  - no threat to global growth, nor are oil prices, which are headed lower
  - often the byproduct of an overheated economy
* is one of the biggest challenges for people living on a fixed income
  - main reasons for investing IN retirement
  - most influential forces on interest rates
  - worst enemies of the elderly
  - price change over time
  - probably the most important idea in cosmology since the big bang itself
  - regarded as a bad process because it leads to distortions and problems in an economy
* is simply a change in the price level
  - the depreciation of a currency in terms of goods
  - stratospheric
  - taxation without representation
* is the consumers version of a no confidence vote in the sovereign publisher
  - continuous rise of price of goods and services caused by faster growing demand
  - cruelest tax of all
  - devaluation of the buying power of the dollar
* is the enemy of stocks
  - the bondholder
  - erosion of buying power over time, if dollars are used as a store of value
  - general increase in the price spent on goods and services
  - greatest threat to the prosperity of all manufacturing firms
  - growth in the cost of products and services, also called the cost of living
  - main cause of economic deterioration
  - most popular cosmological theory describing the early history of the universe
  - number one enemy of fixed income investments
  - price of all goods taken together
* is the rate of change in prices
  - increase in the avergae price level for giids and services in the economy
* is the rise in price of goods and services
  - the cost of products and services over time
  - theft of the value of money and so the state is the leading thief
  - worst enemy of the poor and of the country
  - thus a consequence of the state playing god and is of a religious origin
  - to an important extent a monetary phenomenon
  - traditionally low in the summer months
  - typically the byproduct of an overheated economy
* is what happens if more paper money is spent into the economy than production of wealth
  - made our universe so smooth and big in general
  - where the swelling increases
* is, and has been for several years, a global phenomenon
  - simply put, an increase in the money supply above and beyond production
* lagging indicator that results when demand growth exceeds supply growth.
* leads to currency appreciation and hence increases imports
  - frequent changes in exchange rate
  - technological and economic stagnation
* lessens leasing costs by decreasing payment costs.
* lesser issue with slower economic growth and somewhat stable import prices.
* long-term phenomenon caused by a too rapid growth in the money supply.
* massive, hidden tax imposed on citizens without their understanding or consent.
* means a persistent rise the price of goods and services
  - reduction in the real value of money
  - by which the strong can more effectively exploit the weak
  - money is worth less and less from year to year
* means that every year, the same amount of money buys less
  - rate decreases take the form of relatively smaller rate increases
  - the value of money is falling because prices keep rising
* measure of the increase in the price of goods.
* measures the rate of change of prices.
* misdirects production by distorting the structure of relative prices.
* normal part of the economic cycle.
* occurs during the diastolic phase of the Cardiac Cycle.
* occurs when demand increases relative to the supply available
  - most prices are rising by some degree across the whole economy
  - prices rise
* occurs when the average level of prices increases
  - dollar or any other paper currency loses value relative to gold
  - same amount of money buys less today than it did yesterday
  - value of money falls in relation to the goods it can buy
* only puts people back into work by cutting their wages.
* physical process
* predicts that the universe is at the critical density.
* problem for an investor or for an investment portfolio.
* process of continuous increase in the prices of most goods and services in a country.
* provides a way to generate the right kind of perturbations.
* pushes up wages and prices, but the exact rate is impossible to predict.
* radically change the relative position of many in society.
* raises interest rates, which decreases the value of equity instruments.
* recurring but only intermittent historical phenomenon.
* redistributes wealth when it is unanticipated.
* reduces buying power.
* reduces the buying power of money
  - competitiveness of the country in international trade
  - effect of positive investment results
* reduces the value of basis every year
  - money over time
  - values
* refers to A. Unsustainable economic growth.
* refers to a persistent increase in the average price level and in the cost of living
  - the continual increase in prices
* relatively new addition to cosmological theory
  - phenomenon in the United States
* remains among the lowest in the industrial world
  - low, and growth is strong in most emerging market economies
  - the primary concern for the national economy
* result of excessively expansionary monetary policies.
* results from prices of goods and services increasing.
* rise in the average level of prices in the economy
* rising general level of prices.
* serious impediment to efficient resource allocation and economic development.
* serves primarily to redistribute wealth between debtors and creditors.
* slows the economy and unemployment rises.
* spreads unevenly through society.
* stretches tiny variations that exist on subatomic scales to astronomical sizes.
* sustained increase in the average level of prices
  - price level of the entire economy
* sustained increase in the general price level and is always a monetary phenomenon
  - overall price increase as measured by a price index
* tends to divert funds from stocks and bonds to real estate, gold and collectible items
  - lead to wide fluctuations in exchange rates
* typically raises interest rates and, consequently, earning rates.
* usually causes interest rates to rise
  - is the final link in a chain of well-meant actions
* very important factor in the bond market.
+ Inflation, Costs of inflation
  * Almost everyone thinks inflation is bad. Inflation affects different people in different ways. It also depends on whether inflation is expected or not. For example, banks can change their interest rates and workers can negotiate contracts that include automatic wage hikes as the price level goes up.