How much inflation can the country afford before we’re in trouble? Let’s discuss.
First, let’s get on the same page about some basics. If you’ve noticed the price of a thing increasing over time (say, your favorite candy bar or the cost of college tuition), that’s inflation in action. Economists use the broad increase (or decrease) in prices of goods and services across the country as a measure of economic health. When inflation is stable and predictable, it’s a sign of a basically healthy, growing economy.
