6 Things You Should know

About inflation

What Is Inflaton

When the government prints too much money the value of the dollar decreases because more people will have more money. This causes a person who is selling something to raise prices which makes what you can buy with a dollar go down. A general increase in prices and fall in the purchasing value of money.

How To Measure Inflation

How to measure inflation- Consumer Price Index A measure of price changes in consumer goods and services such as gasoline, food, clothing and automobiles. The Consumer Price Index measures price change from the perspective of the purchaser.

We Need To Predict When It Is Going To Happen

  1. When the government is going to print a lot of money they need to plan ahead. So then they can see if there will be any consequences from making more money. Know when inflation is going to happen before it does

Know That All Inflation Is Not Bad

  1. When there is about 2 to 3 % inflation it actually helps an economy. It can help it because it can give some part of the population some more money. While it does not give enough money to the rest of the population for the sellers to raise their prices.

know when enough is enough

Know when you have gone too far for inflation to help your economy. When you inflate the money too much it will be bad. It is bad because then the sellers will realize how much money everyone has and then will also want to have more money so they raise the prices of their goods.

Always Be Aware Of Inflation

  1. Always be on the lookout for inflation. We need to lookout for inflation so then you can know what to do when it happens. Then you won’t be taken advantage of when it happens.