As we began to read the article, we realized that we didn't really know what inflation was. Fortunately, Fanny, who works in finance, had an example story for us. "If there were five apples on this table," she said, "and each of us at the table had a coin, each apple would cost one coin."
Slide 1
"Now, if each person at this table had two coins," said Fanny, "each apple would then cost two coins."
The amount of money in a system divided by the amount of product in that system equals the price of what is produced. This is a basic principle of economics. The more money you have in the system, the higher the cost of products.
Slide 2
Now we were ready to attempt the articles before us. The first article began by describing banking as it was first conceived: