Inflation

Inflation:

short: an increase of the money supply
longer: an increase of the money supply (bounded by the market under consideration). If fiat notes are the money, the govt issuing newly created notes is inflation. If gold is the money, all mining efforts produce new-to-the-market gold and is inflation. Inflation results in more money chasing the same amount of things to buy, resulting in increased prices (see Consumer Price Index, the CPI).

Inflation Calculator (Consumer Price Index, from 1800 to 2007)

1914 $1000 = 2007 $20,732.49 inc cost 2,073%, dec value 0.005% 1914 $49.58 = 2007 $1000 (or, 50¢ = $10.00)

1914 $1000 = 1959 $2945.04 inc cost 295%, dec val 0.34% 1914 $342.27 = 1959 $1000 (or, $3.42 = $10.00)

1960 $1000 = 2007 $7039.79 inc cost 704%, dec val 0.15% 1960 $146.03 = 2007 $1000 (or, $1.46 = $10.00)