Inflation - An Increase in the Supply of Money or Increase in the Price Level? An Impact of the Definiton on the Theory of Costs

This is paper is purely theoretical. It discusses misinterpretation of the term inflation in economic literature. It describes the transformation of the meaning of the term 'inflation' from increase in the money supply to an increase in the general price level based on academic discussion, it lists examples from economic literature where is the term inflation misused or vaguely described and describes the evolution of the theory of inflation -- the quantity theory of money -- throughout history for fitting in the context. In the last chapter, it demonstrates the correctness of its argument that inflation is indeed an increase in the general price level, based on the meaning of the theory of costs of inflation. Work also proposes, for a complete accuracy, using two different terms -- monetary inflation and price inflation.