What are the pros and cons of inflation for consumers?

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What are the pros and cons of inflation for consumers?

Rounding it up

  • Inflation is the continual decrease in the value of a currency

  • Inflation is a net positive when it is moderate because it spurs wage growth and investment.

  • High inflation is unsustainable and causes investors to hold onto money as opposed to spending.

  • Low inflation, or worse, deflation, is disastrous for an economy because products are no longer profitable to produce.

4 min read

Dan Bucherer
#inflation#wage growth#investment#debt

Dan Bucherer

Dan is a runner and writer living in the Washington, D.C. area, where he currently works for a financial services trade association as the Communications Director.

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