Post
Topic
Board Economics
Re: INFLATION, A MOTIVATION TO INVEST IN CRYPTOFASHIONS
by
MusaMohamed
on 01/04/2024, 10:31:43 UTC
In a sense, inflation is good because it forces people to spend. If people spend, commerce thrives, and the economy moves. There is no point keeping something when it rots over time. That's how fiat is. It's like a perishable food.

Second, inflation is good for those who borrow money. As money is losing value over time, what you borrow today is much more valuable than what you will pay in the future.

I'm not saying inflation is entirely good, though. And it seems that the tide is turning as far as appreciating inflation is concerned. There seems to be a paradigm shift and Bitcoin has probably played a vital role.
We saw it during pandemic when the USA. and many countries massively printed new money to their fiat currency supplies. People in the USA. and many other countries, received money from government drops and spent it to invest in stocks that helped the S&P500, NASDAQ to increase a lot during two years.

But in a long term, inflation makes economy weaker and growth from inflation is not sustainable. Governments and central banks globally try to reduce severity of inflation by avoiding to use Recession, but replace it with "Technical Recession". We must know, when they say about Technical Recession, Recession already existed.