Everyone is talking about inflation, but what is it? Why does it matter? What causes it? And what can the Federal Reserve do about it? This primer will address those questions with the goal of improving the public’s understanding of inflation and the role of the central bank.
What Is Inflation?
Inflation is best described as a persistent rise in the general level of prices. It is not enough for only the price of used cars to increase over time, or even all prices across the entire economy to increase just once. The rise must be both persistent and general.
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