It is a matter of common observation that although money income keeps going up over the years, we never seem to become richer. Prices are rising continuously. This condition is what
we call inflation (通胀) the money supply is becoming inflated so that each unit of it becomes
less valuable. We have got used to higher and higher rates of inflation in recent years. What
could be bought twenty years ago for one pound now costs well over 2 pounds. And at present
this rate of inflation seems to be rising rather than falling. If in the real world our money incomes
go up at the same rate as prices do?One might think that inflation doesn"t matter. But it does .
When money is losing value it also loses one of the qualities of a good money-stability(稳定)
of value. It is no longer acceptable as a store of value; and it becomes an unsuitable means
of delayed payment. Nobody wants to hold a wasting possession, so people try to get rid
of money as quickly as possible. Inflation therefore simply simulates(刺激)our spending and
discourages saving.