Five simple truths embody most of what we know about inflation: Inflation is a monetary phenomenon arising from a more rapid increase in the quantity of money than in output (though, of course, the reasons for the increase in money may be various). In today's world government determines--or can determine--the quantity of money. There is only one cure for inflation: a slower rate of increase in the quantity of money. It takes time--measured in years, not months--for inflation to develop; it takes time for inflation to be cured. Unpleasant side effects of the cure are unavoidable.