Inflation is an increase in the prices of goods and services, as well as a decrease in the purchasing power of money.
Inflation appears
- When there is a shortage of goods or services associated with increased demand for them and rising prices.
- When there is a shortage of financial revenues and the government to have funds for payments, pursues a policy of external loans or prints additional money as part of a quantitative easing (QE) program. Of course, printing money is the easiest way. As a result, there is an overabundance of money that is not secured by assets.
