Introduction
My previous column focused on two technical terms, rarely mentioned thus far in this column series on Guyana as a Petrostate; namely, the real effective exchange rate, REER, and the exchange rate regime, ERR.
Today I address a third technical term, inflation. While I have dealt with this term in the series before, my fear is a number of readers might still conflate inflation with high prices, despite my urgings that, what matters is the rate at which prices are increasing. To repeat therefore, inflation refers to ongoing increases in the general price level for goods and services in an economy over time.
