6 Things You Should Know About Inflation

Trevor Preston and Colton VanVleck

1. Did you know? Inflation can do positive things for an economy and it can also do negative things for the economy. Inflation is mostly bad cause all that they see is how much money they are spending now then what they use to. The downside to inflation includes an increase in the opportunity cost of holding money, and it makes people more thoughtful with their money and they might not invest as much, or they will just save their money.

2. Hyperinflation- Hyperinflation is when money is worth basically nothing. So much of it is printed so circulation is flooded. A good example is when people were payed by wheel barrows full of cash in West Germany and it meant nothing.

3. Inflation in the United States-The actual inflation rate for 2014 is 2% in the United States. To show the Inflation in the United States in the year 1997 a dollar is now worth $1.48 in 2014.

4. Global Inflation- The world average is 3.9% in 2013, for developed nations like the United States, Japan, and China the Inflation is in between 0-4%. For nations that are still developing such as Pakistan, Kenya, and Kyrgyzstan the inflation is typically between 5 and 10%. So you can still see that we are on the lower end of the inflation rate even around the country.

5. Inflation Chart- The United States out of all the countries is ranked 162 out of 221. So next time you complain about how much the dollar is worth, think about how much they pay in a country like Belarus. They have a 52.4% inflation rate. Even in places like Russia there inflation rate is 8.4%.

6. Inflation can be a positive thing- These could include things such as public works projects such as dams, bridges, and other things to still be built. Also they include things such as lower interest rates which help curb an economy from a recession.

Comment Stream

3 years ago

Very nice job on this!!!