It seems almost ritualistic that about once each year, or less, we feel the need to try to bring things into a little clearer perspective because of the media’s never-ending stream of misleading financial news that tends to make so many issues seem more critical than they are. One example is the recent bubbling up of behind the scenes talk suggesting inflation is creeping back into the U.S. Economy.
Briefly stated, inflation is a fall in the value of a currency relative to some constant. In the old days, that constant was fixed-price gold which served well as a measure of how many dollars it was worth at any given moment in time. This gauge went away when the gold standard was discontinued under President Nixon. Ever since, there have been about as many different definitions of inflation as there are economists.Read More