Inflation causes things to cost more, and for our money to buy less (hence your grandparents saying "In my day, you could buy a cup of coffee for a nickel"). Suppose inflation decreases the value of money by 3% each year. In other words, if you have $1 this year, next year it will only buy you $0.97 worth of stuff. How much will $100 buy you in 25 years? Question Help: CVideo ) Message instructor Submit