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Inflation

When money goes wrong

When there is more money but the same amount of bread, each coin buys less bread. Prices go up! This is called inflation. If you saved 10 coins and bread now costs more, your savings buy less. That is not fair to savers.

What you will learn

  • Money supply
  • Price discovery
  • Purchasing power
  • Savings erosion
  • Cantillon Effect
  • Debt-based money

Teach a Friend

The best way to know you understand something is to explain it.

Your friend asks: "Why does everything keep getting more expensive?" Explain inflation.

Personal Money Calculator

See how much the dollar has changed since you were born.

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