THE POSITIVES AND NEGATIVES OF INFLATION
What is inflation:
Inflation is the rate at which the prices of goods and services increase over time, reducing the purchasing power of money. It means you need more money to buy the same things.
The positivies of inflation:
Encourages Spending & Investment – Moderate inflation motivates people to spend rather than hoard money.
Reduces Debt Burden – Inflation decreases the real value of debt over time, making it easier to repay.
Boosts Economic Growth – Controlled inflation can indicate a growing economy and encourage production.