Inflation is when too much money is chasing too few goods?

Question

analyse

Answer 1

That's actually an interesting way to look at it --- however, if there were "too few goods", then companies would happily produce more, especially at higher price levels.

Inflation, simply put, is a rise in real prices.

Answer 2

In mainstream economics, inflation is a rise in the general level of prices, as measured against some baseline of purchasing power.

The prevailing view in mainstream economics is that inflation is caused by the interaction of the supply of money with output and interest rates. In general, mainstream economists divide into two camps: those who believe that monetary effects dominate all others in setting the rate of inflation, or broadly speaking, monetarists, and those who believe that the interaction of money, interest and output dominate over other effects, or broadly speaking Keynesians. Other theories, such as those of the Austrian school of economics, believe that an inflation of the general price level and of specific prices is a result from an increase in the supply of money by central banking authorities.

Related terms include: deflation, a general falling level of prices, disinflation, the reduction of the rate of inflation, hyper-inflation, an out of control inflationary spiral, stagflation, a combination of inflation and poor economic growth, and reflation, which is an attempt to raise prices to counteract deflationary pressures.

Answer 3

1.inflation is when there is artificial shortage of commodities
2. inflation is when there is hoarding of commodities for some reasons

Answer 4

That is not what inflation is, look up the meaning of it

Answer 5

UNCLE SAM SENT OUT BILLS BEFORE YOU WERE BORN THAT THE TAX PAYERS WERE BUYING SIX HUNDRED DOLLAR HAMMERS AND SIX THOUSAND DOLLAR TOILET SEATS, SOME HOW YOUR QUOTES STILL SEEM REASONABLE CORRECT