Well, the video is really simple, but interesting and informative. I should add that inflation exists for people every class in society, but it differs in its manifestation. E.g. for many common people inflation means their salaries are not anough to but an automobile of middle class. At the same moment for an owner of some small-scale business who has enough money to buy this very car inflation can be seen in fact that he can't afford some Cadillac, for example.
Inflations don't deal with strata, they affect the national economy. But the consequences of inflation are felt only by some layers of the society because the poor and the middle class have to limit their wants and needs then.
I agree with Asya because usually you can say "this is inflation" when you compare the money you have in your pocket and the money you have to spend in order to buy this or that thing. And unfortunately we always have to limit our wishes and hence - expenditures, due to inflation.
"Inflation is when the value of everything goes up except for the cash in your pocket" I like it! Quite a simple definition but so true-to-life! Really, for a consumer the only fact that matters is how much he/she can afford with the cash in his/her pocket. That's why we all experience the result of inflation: having the same wages and buying the same products we have to limit our consumption due to lack of money. And that's inflation.
"Inflation is when the value of everything goes up except for the cash in your pocket" - absolutely agree, it's a simple but witty explanation)) I have also tried to use the very phrase to explain what inflation is to my little cousin (she's 12 years old). And she really understood me! Brilliant definition!
According to the Wikipedia :inflation is a rise in the general level of prices of goods and services in an economy over a period of time. This explanation and this short movie explained us what it is without difficult economic terms. For me, as for person who is really far far away from Economics, this explanation is more convenient.
This is a very simple and comprehensible explanation of what inflation is. The video that i've uploaded can't boast with such simplicity, it is full of economic terms and notions(
I like it! Quite a simple definition but so true-to-life! Really, for a consumer the only fact that matters is how much he/she can afford with the cash in his/her pocket. That's why we all experience the result of inflation: having the same wages and buying the same products we have to limit our consumption due to lack of money. And that's inflation.
