Tag: inflation

What Is The Difference Between Deflation and Disinflation?

Inflation is a term used in economics to represent increasing goods and services prices. Similarly, it signifies a decline in a currency’s purchasing power. Inflation can be good or bad, depending on various factors. There are two terms associated with inflation that people often confuse. These include deflation and disinflation. …

Can Inflation Be Negative?

Inflation is the decline in the purchasing power of a given currency over a specific time. Usually, it represents the rate at which the price level of a basket of selected goods and services in an economy increase. The selection of this basket will depend on the index which measures …

What is Inflation Premium?

For investors, investing in various assets or income streams presents several risks. These risks can be specific to the asset class or the market that investors enter. Some risks may apply to all investments regardless of the type of asset or market. One of these risks includes inflationary risk associated …

What Is Inflation Risk?

Inflation refers to the decrease in a currency’s purchasing power. It can come as a result of various factors. Inflation isn’t necessarily a bad thing, as it can also accompany positive changes. However, it usually has adverse effects on businesses and individuals. Inflation risk, also known as purchasing power risk, …

Money Supply and Inflation

In economics, there are two terms that closely relate to each other. These include inflation and money supply. The money supply in a country can have a direct effect on its rate of inflation. However, it is necessary to understand what each of these is before discussing their relationship. What …

Inflation-Linked Bond

Inflation is a concept used in economics and finance. It refers to the decline in the purchasing power of a currency over a specific period. Usually, inflation can have positive and negative effects in several fields. For investors that have a fixed income source, such as bonds, inflation can be …

Is Inflation Good or Bad

What is Inflation? Inflation is a topic used in economics and other related fields. It describes the decline of the purchasing power of a given currency over time. Practically, most currencies around the world suffer inflation after a specific period of time. However, some currencies may also experience an increase …

How Inflation is Measured

Inflation is a topic that comes from economics but relates to several other fields as well. Its definition also comes from economics. However, its definition may differ elsewhere, while the fundamental concept is the same. Inflation is quantifiable and measurable based on several indexes. However, before understanding how to calculate …

Inflation and Interest Rates

Inflation and interest rates are two topics that come up often in economics. Both of these relate to the macroeconomics area of economics. While both play a crucial role in a country’s economy, there are also often interrelated. However, before understanding their relationship, it is critical to understand what each …