Unformatted text preview: first thing to understand is that when the price of a good or service rises (inflation), it probably says more about the value of money than about the price of the good or the service. While some like to point to different products and their rising prices as key indicators of inflation, sometimes these people miss the point that inflation is an economy wide phenomenon that first and foremost affects and economy’s medium of exchange. So fundamentally, the rise in prices of goods and services means a lower value in our money....
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- Spring '12
- Economics, Law of value, Commodity money