Rahul: Daddy?

Rajiv: Yes, son.

Rahul: Daddy, what is inflation?

Rajiv: Inflation, son, is the excessive flow of money.

Rahul: The what of what, daddy?

Rajiv: Son, it means that there is too much money around; people have lots and lots of it. Rahul: What’s wrong with lots and lots of money, dad?

Rajiv: When the money supply expands out of proportion with goods and services available in a country, money loses its value. Son, you will learn all about it when you go to college.

Rahul: I want to learn now, daddy.

Rajiv: Son, when there is too much money around, people expect to be paid very high prices for their goods and services. Everything costs so much. That is how it hurts.

Rahul: Like when you go to buy MLAS.

Rajiv: Go and finish your homework, son.

Article extracted from this publication >>   February 22, 1985