6 Things to Know About Inflation
By Connor Williams & Chrystian Noble
What Is It?
Can We Measure It
Pros VS. Cons?
Pros
Cons
If the economy inflates over 3%, it can hurt the economy. This is due to the lack of value of the dollar after inflation. The companies can’t increase the prices and wages before severe inflation happens
What Does Inflation Effect?
Inflation affects the value of currency. For example one day a product could be low priced and shoot up the next day. The reason for this is because of inflation, if the government brings more money into the economy then the value of it as the nation’s currency decreases.
How To Make A Profit Off Of It
Inflation not only devalues a nation’s currency it raises interest rates. If you have a CD in a bank or a bond you can use this to your advantage by taking it out and putting it back in the bank to gain the new and higher interest rate. However be conscious of giving loans, your total value of what you loaned will have decreased.