Post
Topic
Board Economics
Re: Rate cuts money printing inflation
by
Theb
on 30/09/2019, 20:03:10 UTC
First look for the current inflation rate your country has if the rate ranges around 2 to 5% then it is considered healthy
I wouldn't call 5% inflation healthy at all. In fact, it's something I would consider moving to another country for, especially if the taxation system is also designed to empty your pockets.

If you think logically, 5% inflation means that your money will lose 50% of its purchasing power in a decade. That's something I only see happen in financially weaker countries.

And now you are just moving out of my point, last time I checked it's about how risky it would be for Venezuela to still pursue in crypto investments as a saving grace for their country and now you are just picking of parts of my statements just to prove a point but I'll give you a worthy reply just to rebut what you are saying. Contrary to popular belief inflation (not hyperinflation) promotes economical growth for the country, it may increase the prices and all but it signifies demand for the products in that country unlike deflation where even if you have a bigger buying power only signifies a decrease in demand that is why they are giving more value for your money, Japan has been battling deflation for years and they still haven't reached their target. And why are you assuming that a 5% inflation rate happens yearly for 10 straight years? Inflation (again not hyperinflation) doesn't work that it is a means to balance out supply and demand if everything normalizes with the help of inflation then we can start to expect a decrease in inflation within a year or so or even by the end of a quarter.