Monday, June 13, 2011

Inflation?

While the Federal Reserve continues to keep interest rates low in order to avoid deflation and spur economic activity, inflation is already here. You don't need the Fed to raise rates to officially signal that inflation is here. If you make visits to the gas station or grocery store, you have felt the rise in prices. If inflation is simply defined as "too much money", then the effect is often a rise in prices.

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