What is INFLATION? - Apakah dia inflasi?

Q. What is Inflation?

From Mike Moffatt, http://www.economics.about.com

The Economics Glossary defines Inflation as:

Inflation is an increase in the price of a basket of goods and services that is representative of the economy as a whole.
(Inflasi ditakrifkan sebagai kenaikan harga barangan atau servis yg mewakili sebahagian dari keseluruhan ekonomi)

A similar definition of inflation can be found in Economics by Parkin and Bade:

Inflation is an upward movement in the average level of prices.
(Inflasi adalah pergerakan menaik untuk paras harga pukul rata)

Because inflation is a rise in the general level of prices, it is intrinsically linked to money, as captured by the often heard refrain "Inflation is too many dollars chasing too few goods". To understand how this works, imagine a world that only has two commodities: Oranges picked from orange trees, and paper money printed by the government. In a year where there is a drought and oranges are scarce, we'd expect to see the price of oranges rise, as there will be quite a few dollars chasing very few oranges.

Thus, as shown by the article "Why Does Money Have Value?", inflation is caused by a combination of four factors:

The supply of money goes up.
The supply of other goods goes down.
Demand for money goes down.
Demand for other goods goes up.

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