Chart of the Week 28 August 2014
The 70-year history of inflation reminds me of a hockey stick, with the blade close to the "ice" until about 1970 and the stick handle rising sharply since then. Before 1970 the quantity of money was constrained most of the time by a metallic standard and, in general, prices remained relatively flat or went lower as productivity improved. Since 1970 the quantity of money has not been so constrained and the purchasing power of each unit (dollar) has been rapidly decreased.
History and cause of inflation is discussed in the video following the Read more >> jump.