There is only one meaning that can rationally be attached to the expression inflation: an increase in the quantity of money that is not offset by a corresponding increase in the need for money, so that a fall in the objective exchange-value of money must occur

– Daily Pfenning 5/18/14

Traditionally, as governments increase the money supply, it naturally leads to higher inflation rates. After all, an increase in the amount of currency in circulation is the original definition of inflation. Ludwig von Mises, a leader in the Austrian school of economics, wrote the following in 1912, “There is only one meaning that can rationally be attached to the expression inflation: an increase in the quantity of money that is not offset by a corresponding increase in the need for money, so that a fall in the objective exchange-value of money must occur.” This fall in the exchange-value of money can either be reflected in an increase in general prices or, alternatively, as asset price bubbles. “

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