Entity: INFLATION
Inflation refers to the sustained increase in the general price level of goods and services in an economy, resulting in the devaluation of currency. It is a common economic phenomenon with historical roots.
INFLATION
Etymology
The term 'inflation' is derived from the Latin word 'inflare', meaning 'to inflate' or 'to puff up'.
Definition
Inflation is a sustained increase in the general price level of goods and services in an economy, resulting in the devaluation of currency.
Historical Context
Inflation has been a historical feature since the use of money as a means of payment. One of the earliest documented inflations occurred in Alexander the Great's empire in 330 BC.
Cultural Significance
Inflation impacts various aspects of an economy, including purchasing power, interest rates, and investment decisions.
Related Concepts
Inflation is closely related to deflation, hyperinflation, and monetary policy.
See Also
A persistent rise in the general level of prices related to an increase in the volume of money, leading to the loss of currency value.