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Inflation is generalized increase of prices of goods and services in an economy, along with a corresponding fall in the purchasing value of money. The rate of inflation refers to the increase of the price of goods and services over time.
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Why does Samuelson say common stocks are better than bonds and preferred stocks during infla...
and common stocks, he writes:
To test his understanding of these three forms of securities, the
reader should make sure that he understands why common stocks
are better investments in time of inflation … Does it mean: if one wants to buy a security from a profitable company during inflation, which should one buy? …