Reflections On Investing: Inflation And Relative Prices

Relative price changes are often confused with inflation, but they are different. This difference can lead to a misunderstanding of the causes of inflation.

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Relative price changes, changes in the price of one good or service relative to others, are often confused with inflation, but they are fundamentally different. This difference can lead to a misunderstanding of the causes of inflation. In this video, we explain the difference and what it implies for policies to control inflation. 

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