Tag: purchasing-power

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Chapter 45: Inflation Defined — Economics 101

Inflation is a general rise in the price level — or equivalently, a fall in money’s purchasing power. It has two distinct causes, three measurement tools, and one target rate (2%) that central banks treat as a cornerstone of stable growth.
Chapter 46: Inflation: Winners and Losers — Economics 101

Unexpected inflation is a hidden wealth transfer: it enriches borrowers at lenders’ expense, helps producers before workers catch up, and devastates savers and people on fixed incomes. Understanding who wins and who loses explains why inflation persists and why its distribution matters as much as its level.