Inflation: Stealing from the Poor for the Rich
Robin Hood and his Merry Men I n today’s complex economy it is useful for the ordinary citizen to understand a few simple principles about economics. That way, they can manage their own money better and also contribute their voice to policy making in their countries. This post is about inflation, its causes and ramifications and how it can be managed in any country. Money is a used for acquiring goods and services and when the price of goods and services rise we say that inflation is taking place. The price of something depends on many factors but two of the primary ones are 1. Demand and supply balance 2. Extent of Money Supply. Both factors are easy to understand. If a commodity becomes in short supply then its price tends to rise. If apple crops have been destroyed by untimely frost then apple prices will rise. If the demand for a product increases then too its price rises but if demand falls prices fall or crash. The balance of demand and supply is one of the f