Theoritical aspects of Inflation
Keywords:
inflation is a general increaseAbstract
In economics, inflation is a general increase in the prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. The opposite of inflation is deflation, a sustained decrease in the general price level of goods and services. The common measure of inflation is the inflation rate, the annualized percentage change in a general price index. As prices do not all increase at the same rate, the consumer price index (CPI) is often used for this purpose. The employment cost index is also used for wages in the United States.
References
"Consumer Price Index for All Urban Consumers (CPI-U): U.S. city average, by expenditure category, March 2022". Bureau of Labor Statistics. March 2022. Retrieved March 12, 2022.
"CPIH Annual Rate 00: All Items 2015=100". Office for National Statistics. April 13, 2022. Retrieved April 13, 2022.
Why price stability? Archived October 14, 2008, at the Wayback Machine, Central Bank of Iceland, Accessed on September 11, 2008.
Paul H. Walgenbach, Norman E. Dittrich and Ernest I. Hanson, (1973), Financial Accounting, New York: Harcourt Brace Javonovich, Inc. Page 429. "The Measuring Unit principle: The unit of measure in accounting shall be the base money unit of the most relevant currency. This principle also assumes that the unit of measure is stable; that is, changes in its general purchasing power are not considered sufficiently important to require adjustments to the basic financial statements."
