#Inflation is a rise in prices across the economy over time.
It makes the #purchasing-power erode across the entire economy over time.
Gradual, low and stable inflation is okay - they want predictable prices so they can #plan.
#Hyperinflation is inflation out of control where a unit of #currency destroys itself to tens of orders of magnitude.
Central banks do everything they can to avoid hyperinflation:
#Deflation sounds good but wages fall, so everything becomes more expensive.
Prices stay the same but you purchasing power is eroded just the same.
You can go back to the [[Economics main page]]
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