Journal Article
Rising relative prices or inflation: why knowing the difference matters
Abstract: Almost everyone uses the word inflation to refer to any increase in prices, but it ought to be reserved for a just one kind of price increase. True inflation has a different cause?and a different cure?than the price increases of goods and services caused by constantly changing supply and demand conditions. The Federal Reserve can and should act to control inflation, but when relative-price changes are putting pressure on businesses and consumers, the Fed can do little.
Keywords: Consumer price indexes; Inflation (Finance);
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https://www.clevelandfed.org/publications/economic-commentary/2008/ec-20080601-rising-relative-prices-or-inflation-why-knowing-the-difference-matters
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Bibliographic Information
Provider: Federal Reserve Bank of Cleveland
Part of Series: Economic Commentary
Publication Date: 2008
Issue: Jun
Order Number: 1