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→Monetary theory
==Monetary theory==
==Monetary theory==
To hold prices stable in a growing economy, the amount of currency in circulation should be held commensurate with the net rate of growth of new workers entering the labor force, which itself is a function of population growth. Inflation occurs when a country is flooded with currency in excess of its growing population, and hence, its economic growth. In a country with a declining population, a similar phenomenon can occur if the amount of currency in circulation remains high as the number of workers and consumers declines.
To hold prices stable in a growing economy, the amount of currency in circulation should be held commensurate with the net rate of growth of new workers entering the labor force, which itself is a function of population growth.<ref>both natural increase and by immigration.</ref> Inflation occurs when a country is flooded with currency in excess of its growing population, and hence, its economic growth. In a country with a declining population, a similar phenomenon can occur if the amount of currency in circulation remains high as the number of workers and consumers declines.
==Hyperinflation==
==Hyperinflation==