Four Theories of Inflation (in simple words)

Inflation is like that drunken party guest who's good at revving things up but bad at dialing back when everyone wants to chill. Four main theories try to explain how and why inflation happens, but the explanations tend to be as complicated as the theories themselves. So, this piece--an extended glossary entry--attempts to break each theory down, explaining them in simple words that most people can understand. Still, inflation is a tricky and complex beast. But getting a handle on it conceptually can help you navigate its twists and turns, guiding your expectations and steering your financial choices with greater confidence and savvy. Here it is: Inflation defined.