Misunderstanding Inflation

“Yellen says gasoline tax holiday worth considering as anti-inflation tool” (Reuters) This administration seems not to understand what inflation is. Inflation is a general increase in prices, caused by an increase in the money supply. The money supply increases in size because of the government spending too much money or printing too much money. Ways to fight inflation include, cutting back on government spending, raising interest rates, and raising taxes. Cutting taxes will only make the problem worse. #economy #petrol #Gas #inflation