#Forbeginners

What is inflation:

Inflation is the rise in the general price level of goods and services over time, reducing the purchasing power of money.

Pros of Inflation:

• Encourages Spending & Investment – People buy goods sooner before prices rise.

• Reduces Debt Burden – Fixed debts become easier to repay as money loses value.

• Boosts Economic Growth – Moderate inflation encourages businesses to expand.

• Prevents Deflation – Avoids economic slowdowns caused by falling prices.

Cons of Inflation:

• Reduces Purchasing Power – Money buys less over time.

• Increases Cost of Living – Essentials like food and rent become more expensive.

• Creates Uncertainty – Businesses and consumers struggle to plan for the future.

• Hurts Savings – Money in savings loses value if interest rates are low.

THE END