Making Money From Inflation
Making Money from Inflation
Inflation is the all-encompassing and continued rise taken together level of prices measured by an index of the cost of various goods and services. Recurring price increases erode the purchasing power of money and other financial assets with fixed values, creating grave economic distortions and uncertainty. Inflation results when actual economic pressures and anticipation of future developments cause the demand for goods and services to exceed the supply available at existing prices or when available output is restricted by faltering productivity and marketplace constraints. Sustained price increases were historically directly linked to wars, poor harvests, political upheavals, or other unique events.
When the upward trend of prices is gradual and irregular, averaging only a few percentage points each year, such creeping inflation is not considered a serious threat to economic and social progress. It may even stimulate economic activity: The illusion......
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