Etymology:
Inflation derives from the Latin word "inflatio" (genitive "inflationis"), meaning "a blowing up" or "a swelling". It is derived from the verb "inflare", which means "to blow into" or "to swell".
Meaning and Origin:
Inflation refers to a sustained increase in the general price level of goods and services in an economy over time. It is caused by an excess of demand for goods and services in relation to the available supply.
The term inflation first appeared in English in the late 17th century, initially referring to the debasement of currency through excessive issuance. In the 20th century, economists began using it to describe a more general phenomenon of rising prices caused by a variety of factors.
Causes of Inflation:
The main causes of inflation include:
Effects of Inflation:
Inflation can have significant effects on an economy, including:
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