The definition of inflation, according to Webster's Revised Unabridged Dictionary, is "an

undue expansion or increase, from overissue." (Hypertext, 1) Although, Webster's is

considered by most to be the overall best dictionary, WordNet states the meaning of

inflation a lot clearer by saying, "it's a general and progressive increase in prices."

(Hypertext, 1) It occurs when the value of goods rises faster than the value of money. The

usual approximate measure of this is the Consumer Price Index, which weigh the prices

of different goods according to importance in a typical budget and then shows how much

the prices of these goods have increased. This immediately raises some problems; for

example, the weight of the goods must change over time. The importance of computers

was not measured in the price index 100 years ago. Another problem is the failure of the

price index to capture changes in quality. The quality of a good may have improved by

20%, while the price has only risen by 10%. The consumer price index doesn't feel this

should be a factor, but many would disagree. Hence, inflation is not easy to define in

of being stable and prosperous without effecting the inflation rate in a negative way.

percent. It had been holding relatively steady at this percentage for the previous four years

could have been increased were not. This is just one example of market failure through

period of time. Another good demonstration of a healthy economy with low secondary

Some common words found in the essay are:
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Approximate Word count = 1061
Approximate Pages = 4 (250 words per page double spaced)