Inflation is a tough subject to handle and everyone has a differing opinion on how it works. The Keynesian theory, used by the government and the Federal Reserve points out that short term inflation can be a way to spur economic growth. On the flipside, it hurts in the long term by rising prices. Read more…
The talk of inflation has never been this high. Bernanke and company are trying very hard to keep the markets up while keeping inflation lower than the key 3%, doing so is problematic. Trying to infuse billions of dollars without making prices rise universally is against the laws of economics. So far, that extra cash has only been seen in products high in demand: sugar, corn, oil, gold, silver. Read more…
China is experiencing the same rate of inflation the United States is seeing due to its currency and its near peg to the US Dollar. Food and energy prices have gone up the at the fastest rate in the last 12 years. The consumer price index rose 8.7% since just last February. Read more…
You would never think that the markets would drop due to worries of inflation, which is one of the biggest reasons we have advances and bubbles on the markets. Today the market suffered a quick loss after worries that inflation might pose a risk to the markets. Read more…
