Inflation

Inflation is a government regulation that affects the value of money or currency, and anything else related to money.

This regulation can change the value of currency, making its value higher or lower. There has been some raises in the value of currency, but for the past while inflation has decreased the value of currency.

At the moment three US dollars can buy as much as ten cents did in 1989. There are so many incidents of this over the years. 

Something that can be affected by inflation are interest rates. Inflation can affect these interest rates because inflation can raise or lower the value of the currency, which raises or lowers the interest rate, this can be problematic for someone who has to pay off a lot of debt, especially if the value of the currency goes down, and the interest rates will be raised. 

This regulation even affects housing prices, car prices, gas prices, and even the food that you buy. So pretty much anything that has to do with money can get affected by inflation.

Inflation is a disadvantage for the regular working class and business owners, because inflation is unpredictable, and these people usually are not prepared for the economic changes that inflation causes.

But on the other hand, for the government, inflation is an advantage, since they are prepared for it and can use it for their own needs.

Personally I think inflation is a good and bad thing, but for the past while it has not been very good.

Conclusion

In this essay I wrote about inflation, how it affects the economy, and what I personally think about it.

Published by theworksofadreamer

I'm a young blogger who dreams a lot. http://theworkofadreamer.com

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