Investing requires skill & to become notable at it, investors must be familiar with factors that impact their investments. One of these crucial aspects is #inflation. Understanding inflation is essential for making informed investment decisions. So let's talk more about it

🏴𝐈𝐧 𝐭𝐡𝐢𝐬 𝐭𝐡𝐫𝐞𝐚𝐝, 𝐰𝐞'𝐥𝐥 𝐝𝐢𝐬𝐜𝐮𝐬𝐬:

✔️How Does Inflation Work?

✔️Why does inflation occur?

💡𝐇𝐨𝐰 𝐃𝐨𝐞𝐬 𝐈𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 𝐖𝐨𝐫𝐤?


Inflation refers to the rise in the price of goods & services, which reduces the purchasing power of each unit of currency. So, if a KG of mango cost $0.5 in 2020 & a KG of mango cost $1 in 2023,your purchasing power drops cos you will only get 1/2 a KG of mango for $0.5 in 2023

Moderate inflation is required to sustain econ growth, but when it becomes too high for an extended period of time, its bad for economy. Hot inflation shows that consumer demand exceed supply. Rising prices, so wen prices at peak, spending falls, which can easily lead to recession

💡𝐖𝐡𝐲 𝐝𝐨𝐞𝐬 𝐢𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 𝐨𝐜𝐜𝐮𝐫?


The fundamental components that reflect the rate of inflation are supply and demand, hence economists characterize two forms of inflation depending on the fluctuating nature of supply and demand:

~ Demand pull inflation⚡️

~ Cost push inflation⚡️

The most common sort of demand-pull inflation occurs when demand drives up the price of goods or services. When there is a disruption in the supply of goods or services, such as when there is a global epidemic, cost-push inflation occurs.


We hope you all gain some good knowledge from this thread and find it useful for all of you. We have committed to provide you with more such useful stuff in the coming days, so please stay tuned and remain connected. Thank you !

#Inflation #crypto