”. An example of inflation is, how houses 25 years ago cost 5 times less than they do right now and that even though from year to year or month to month those prices fluctuate a little bit, the overall sustained trend is more and more expensive. Another way to explain inflation comes from the book, “the most instructive way to think about inflation is not that prices are going up, but rather that the purchasing power of the dollar is going down.” In other words, during inflation, the value of a dollar is going down which makes it seems like the prices of things are going up. This is hard though because people are still receiving the same amount of salary. So how does it all go back to normal? The answer is the Federal Reserve.
The federal reserve
The federal reserve