Inflation; the Silent Bandit
A deeper look into the concept of intentional Economic Inflation
Inflation is prejudiced, as it benefits a few and destroys others. That is a trait that not everyone appreciates in our modern economic sphere. People with tangible assets, such as property or stocked commodities, may like to see some inflation as it tends to raise their assets’ worth.
People holding on to their cash may not like it because it disintegrates the value of their monetary reserve.
Despite the misconception, not every inflation is unintended. Some idealize inflation to maintain an optimum level to encourage spending instead of saving to sustainable economic growth.
Economic Inflation as the Product of Intention
Inflation is the rate of rising prices for goods and services in the face of the prevailing currency’s falling purchasing power. In a highly regulated market, the inflation rate adjustment serves as the shepherd’s stick on the herd.
Inflation is grouped into three classes: Demand-Pull inflation, Cost-Push inflation, and Built-In inflation. And the most regularly used inflation criteria are the Consumer Price Index (CPI) and the Wholesale Price Index (WPI).
