Inflation measurement:Methodology

Research Paper (undergraduate) from the year 2009 in the subject Business economics - General, grade: 1,3, University of applied sciences, Munich, course: General Economics- MBA programme, language: English, abstract: In economics, inflation is a rise in the general level of prices of goods within an economy over a period of time. That means the real value of money will decline and generate a loss of purchasing power. "A dollar today doesnt buy as much as it did twenty years ago." In 1931, for example, it was possible to go to the cinema for 25 cents. Today we have to pay between five and nine Euros. In Germany the fear of inflation is based on some experiences the Germans already have made with it.