It is a matter of common observation that although money income keeps going up over the years, we never seem to become richer. Prices are rising continuously. This condition is what we call inflation: the money supply is becoming inflated so that each unit of it becomes less valuable. We have got used to higher and higher rates of inflation in recent years. What could be bought twenty years ago for one pound now costs well over 2 pounds. And at present this rate of inflation seems to be rising rather than falling. If in the real world our money incomes go up at the same rate as prices do. One might think that inflation doesn't matter. _ When money is losing value it also loses one of the qualities of a good money--stability of value. It is no longer acceptable as a store of value; and it becomes an unsuitable means of delayed payment. Nobody wants to hold a wasting possession, so people try to get rid of money as quickly as possible. Inflation therefore simply stimulates our spending and discourages saving. .In the writer's view, if incomes and prices rise at the same rate,   _  .
inflation maybe still be a problem we have nothing to worry about inflation is no longer a problem we will become richer and richer