Inflation In One Page
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Explain my hypothetical case to me using the constructs of this "article".
1. I sell widgets. My factory can make 1000 a month.
2. On Tuesday, I sell 100 widgets at $1 each.
3. On Wednesday, my widgets are featured on the news.
4. On Thursday, I sell 800.
5. I realize that I'm going to need more widgets! I decide to start selling them for $2 to cut demand a little, and to profit a little.
This is a demonstration of inflation, yet it has absolutely nothing to do with the money supply, but everything to do with the demand for my widget. For macro-sizing, see: oil.
Here's a better one-page explanation of inflation: http://en.wikipedia.org/wiki/Inflation
Although "inflation" is sometimes used to refer to a rise in the prices of a specific set of goods or services, a rise in prices of one set (such as food) without a rise in others (such as wages) is not included in the original meaning of the word. Inflation can be thought of as a decrease in the value of the unit of currency.
Basically, I'm trying to point out that inflation is a hotly contested complex term, which we are currently demonstrating by linking to different sections of the same entry that somewhat contradict.
It is far to large a topic to be understood in a one page primer that states: "Government prints too much money."