Is Inflation All Due to Money?

Inflation is an all-pervasive problem which affects everyone’s decisions. Individuals must consider the outlook for prices when planning budgets or wage demands, when deciding whether to buy a house or in what form to hold savings, as well as a multitude of other economic decisions. Also, business is increasingly concerned about the outlook for inflation, especially as it relates to planning and capital investment. It is not surprising, therefore, that persistent inflation has led to increased public demands that something be done to correct the problem.