money is never truly lost
In fact, money is printing every day more and more. So technically there is more of them every day. Which decrease their value and then we have inflation.
In fact, money is printing every day more and more. So technically there is more of them every day. Which decrease their value and then we have inflation.
What does cause inflation, however, is when more dollars are printed versus things being made. You can't precisely measure the latter, so you have to make do with price indices and such. Which makes inflation hard to actually gauge, especially when everyone expects more and more to be produced every year (i.e. they expect their savings and investments to appreciate/gain interest) so you have to print more dollars to at least keep up the facade.