Inflation is often defined as a sustained increase in prices for a broad range of goods. Economists explain that rising prices are the symptom, however, and not the cause. The cause of inflation is the devaluation of currency, frequently brought about by the introduction of more currency into the economy.
Inequality (noun) an expression consisting of two unequal quantities, with the sign of inequality ( or >) between them; as, the inequality 2 3, or 4 > 1. Inequality (noun) an irregularity, or a deviation, in the motion of a planet or satellite from its uniform mean motion; the amount of such deviation. Origin: [L. inaequalitas.]
DEFINITION of 'Solvency'. The ability of a company to meet its long-term financial obligations. Solvency is essential to staying in business, but a company also needs liquidity to thrive. Liquidity is a company's ability to meet its short-term obligations. A company that is insolvent must enter bankruptcy; a company that lacks liquidity can also be forced to enter bankruptcy even if it is solvent. Next Up.