In this episode, we take a deep dive into inflation—the decline in purchasing power that occurs when the general price level of goods and services rises. We explore the long history of this economic phenomenon, ranging from the debasement of silver coins in Ancient Rome and the influx of gold during the 16th-century "price revolution," to the extreme hyperinflation seen in the Weimar Republic and modern Venezuela,,.

Join us as we break down the complex causes of inflation, including the debate between Monetarists, who view it as a result of money supply growth, and Keynesians, who focus on aggregate demand shocks,. We also discuss the modern "triangle model" that accounts for demand, supply shocks (like the 2021 energy crisis), and consumer expectations,. Finally, we examine the winners and losers in an inflationary economy—such as how debtors may benefit while savers lose value—and how central banks use interest rates and inflation targeting to keep the economy stable.