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I am thinking of inflation caused after covid. Inflation is an increase in the prices of goods or a decrease of purchasing power of money. Both are not the same though. Excess money supply after covid and supply chain bottlenecks have caused an increase in inflation throughout the world. Each country has had a different experience with inflation. I think an understanding of the following things is important to understand inflation 1. First thing to understand is that not all inflation is caused by an excess of the money supply. For example, wheat prices have surged due to Russia Ukraine war and drought/heatwave in major wheat producers. Hopefully by the next year if Russia Ukraine war is not still ongoing then wheat prices will normalize. Such price increases due to supply disruptions are temporary in nature. But inflation caused excess money supply is more permanent in nature. This is what central banks try to avoid by an increase in interest rates. 2. The second important thing to un...