Inflation

When economists look at inflation and unemployment in the short term, they see a rough inverse correlation between the two. When unemployment is high, inflation is low and when inflation is high, unemployment is low. This has presented a problem to regulators who want to limit both. This relationship between inflation and unemployment is the Phillips curve. The short term Phillips curve is a declining one. Fig 2.4.1-Short term Phillips curve

This is a rough estimation of a short-term Phillips curve. As you can see, inflation is inversely related to unemployment. The long-term Phillips curve, however, is different. Economists have noted that in the long run, there seems to be no correlation between inflation and unemployment.

Nope. It will actually increase unemployment.

If we print more money, it becomes more common.

It is now worth less, as more people have more.

Salaries and expenses stay the same, so companies lose money.

All the money owed to them is worth less.

They have less money to spend.

That way, they can't invest money in hiring people.

They may have to fire people to keep up with expenses.

Inflation is a general increase in the prices of goods and services. In other words, inflation means continuously decrease in the value of money due to excess supply of money in the market. There are two types of inflation demand pull and cost push inflation.

Causes behind inflation are reduced in taxes, rate decrease in saving, increase in supply of goods, increase in the number of producers in the market. To control inflation there should be an increase in the tax rate and increase in the interest rate.

Novanet: a decline in the purchasing power of a given unit of money, a continuing increase in the price of goods and services, or a continuing decrease in the capability of money to buy goods and services.

Answer. At bottom, inflation results when we print money faster than we create goods. The creation of money (and that must include credit as well) is mainly in the hands of the government, but other credit creators have their part as well.

The converse, depression, is caused by removing credit or money from the marketplace. As famously happened in the 1930s depression.

In my view, the opinions above between 'Causes' and 'etc.' are somewhat confused.

Answer 2

Inflation, with the possible exception of rising oil prices (if you want to call that part of inflation), is really a hidden tax and not a natural phenomenon. It is the constant DEVALUATION of national currencies by well established banking cartels which leverage control over national governments. This gives the false appearance of goods being more expensive because the currency is worth less goods. Even goods in no way related to oil prices. ONE of their methods of devaluing currencies is by creating over supply of currency by overprinting notes (a.k.a. toilet paper). If this form of inflation (which is not oil related) really was a natural phenomenon like we get told, we would also have just as much deflation - as per the law of averages. We do not.

The bankers further financially enslave us with their economist's jargon WHICH DOESNT VARY THAT MUCH FROM ECONOMIST TO ECONOMIST. They tell us that they are unfortunately forced to lift interest rates to help "curb" the very inflation that they cause in the first place. They therefore get even more hidden tax from us. When the golden goose is almost dead, they quickly tell us that all those interest rate increases have started working and now inflation is under control, which it very well might be - SO WHAT ! So they then lower interest rates. Just as the golden goose starts laying more golden eggs again and starts recovering from their exploitation they then start the whole process again of causing inflation (tax) to go higher and higher until once again they have to lift interest rates. So we are caught in the trap going back and forth between high interest rates and inflation - BOTH JUST HIDDEN TAXES AND GIANT SCAMS OF THE BANKS.

Stop using their paper money as much as possible and trade with anything else you can lay your hands on that isn't (toilet) paper money. We should encourage people to invest in gold and silver coins that aren't subject to inflation. Trading in silver coins on a day to day basis would be even better, but not many traders accept silver coins. Even if saving for only a few years Krugerands wont experience inflation.

Inflation from oil seems to be caused in a similar way. Many not fooled by their propaganda have suggested that crude oil is not nearly running out geologically according to some studies, but simply that the supply is controlled by the miners (OPEC) and the refiners (middle men/oil companies, eg. BP, Shell, etc). This artificial limiting of the supply pushes up prices because the demand is still the same or higher. The inflated oil prices pushes up petrol and diesel, which in turn pushes up food prices and that of other goods that need to be transported. The answer for petrol car users - go electric. The answer for food prices - wait for supermarkets to go electric. Food price increases due to global warming's climatic conditions destroying crops is only a part of the story. Don't be fooled !!!!!!

Currency inflation cause by banking manipulations are just as bad as oil manipulations and we should stop using their paper money and trade with anything else you can lay your hands on that isn't (toilet) paper money. The last thing we should be encouraging out children to do is save paper money in the bank. Teach them top rather purchase Krugerands.

Politics is controlled by economics (money). Money drives the media, money drives politics, people are influenced by the media, and we have modern democracy. High interest rates are not the only way to reduce inflation because inflation is not a natural phenomenon. Inflation is not caused by too much economic growth, etc, etc, like we get told. How can economic growth cause your money to be worth less ?

Economic growth just makes inflation less noticeable because you don't realise that much when your money becomes worth less while business grows. That is the one normally accompanied the other. The bankers cause high inflation during these times of economic growth, then say they will have to lift interest rates to curb the economic growth which is accompanied by inflation but does not cause it. If you continue believing the status quo, you will continue to get poorer. Raw materials and metals, hard assets cannot be manipulated by the paper money printing press. It cannot be manipulated by banking manipulations. Force banks to charge fair interest rates (eg. 1% or less), stop them from to lending to those who can't afford loans, monitor the amount of paper money they print and force them to back it up with metals to control inflation. Then there will be no "housing bubbles" or need to control inflation. There was once a time when you could take you paper bank note/bill to the bank and they would exchange it for the equivalent amount of GOLD. Now they tell you to go to a jewellery store. So what have they done with our gold that was in their possession ?

Most governments have given away power over their reserse banks to private banking institutions who are the shareholders, contrary to popular belief. The government pretend this is not true and allow people to be confused by the fact that they appoint the chairman or the governor of the Reserve Bank. That is about the only power the government has over the Reserve banks of the world, the private shareholders tell the chairman/governor what to do and he/she has to listen. I'd like to see some proof that the STATE or government has any majority shares in any reserve bank !!! Government at best is a regulator of the monetry printing system which is in private hands and even that they very often fail to do properly !!!
The price of goods and services going up because of an over supply of money. as the amount of money in wallets increases so does the temptation to increase prices which increases costs "especially by banks and finance institutions" They have the least to lose as they hike up interest rates to regain losses.
when prices of goods increase due to demand is called demand pull inflation