Inflation: a situation where no one wins. The poor get poorer, the rich get richer, and the economy stops dead in its tracks. Inflation occurs when there is an overage of money in an economy. This leads to higher prices for goods/services, since enough people have the money and are willing to pay. Unfortunately, the buyers soon find themselves with not enough money, so they, in turn, raise the price on the goods/services they provide. Over a short amount of time, the costs of things become prohibitive. The way to fix inflation is to take money out of the economy. The person who charges more for their good/service would no longer have buyers willing to spend that much money, so they will drop their prices. Then the buyer follows suit, and soon things are back to normal.
There must be a delicate balance, however. If too much money is removed from the economy, we experience deflation, where there is not enough money to pay for goods/services.
A more immediate, short-term fix for inflation is price control, where a certain good/service is rendered for a fixed cost all across the galaxy. This might work in theory, but I see no way to implement it in a galaxy the size of ours.
