Inflation
economics · macroeconomics
A sustained rise in the general price level, reducing a currency's purchasing power over time.
- Also known as
- price inflation, monetary inflation
Inflation means money buys less over time as the general price level rises. In fiat systems, it can be influenced by monetary policy, fiscal policy, supply shocks, demand, and public expectations.
Price inflation is commonly measured with indexes such as CPI or PPI, while monetary inflation refers to growth in money supply. The two are related but not identical.
In cryptocurrencies, inflation usually refers to new token issuance from mining, staking, grants, or treasury emissions. Protocols may reduce issuance with halvings, cap supply, or offset issuance with fee burns.
Related terms
Fiat Currency
→Fiat currency is government-issued money that is legal tender and not directly backed by a commodity like gold.
finance · currency
Emission Schedule
→An emission schedule defines when and how quickly new coins or tokens enter circulation.
economics · mining
Hard cap
→The maximum supply a cryptocurrency protocol permits, enforced by consensus rules or token contract logic.
economics · tokenomics
Halving
→A scheduled reduction in block subsidy that cuts new coin issuance, often by half, at predetermined block heights.
mining · event
Hyperinflation
→Extremely rapid inflation in which a currency loses purchasing power quickly and public confidence breaks down.
economics · macroeconomics