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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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Explain inflation to an economic novice
In addition to what CAMELS says, it's not just the money supply but the product of money supply and money velocity.
To make matters even more complicated, the wider measures of money like M2 can eith …