Inflation, in classical economics, is an increase in the total stock of money. As the consequence of that, so called price inflation occurs and is revealed in a rise in general level of prices of goods and services over time. Inflation is also thought of as insurance against a shortage of supply. Although "inflation" is sometimes used to refer to a rise in the price of a specific set of goods or services, a rise in price of one set (such as food) without a rise in others (such as wages) is not included in the original meaning of the word. Increases in the price of financial assets (stocks, bonds, etc.) are not included in the calculation of inflation by governmental or banking agencies.


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