One measure of inflation is to compare growth in the money supply to GDP growth. Money supply growth should not exceed economic growth. When money supply growth exceeds economic growth, that resulting “slack” is inflation. Written another way, inflation exists when the money supply grows faster than GDP.

See our related TEK2day article here: https://open.substack.com/pub/tek2day/p/inflation-in-pictures?r=1rp1p&utm_campaign=post&utm_medium=web

"Inflation is the process of making addition to currencies not based on a commensurate increase in the production of goods." —Federal Reserve Bulletin (1919)