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