Why Inflation is a big problem for a country?

[laredo7mm]

We all know that Inflation in the US economy is at an alarming rate. Not the only USA, but Inflation is also a big problem for many countries globally, and it seems there is no way to stop it. Is it impossible to stop inflation in fiat currency or govt don't want to take any action it stop it? Do you think people can do anything to stop inflation in their economy or its inevitable?

[fiulpro]

Inflation is going to increase the prices of goods and services but at the end for people to be able to afford all of that they must have better jobs and more salary as well which is not a direct result of inflation. Generally the salary takes a while and therefore at the end of the day they would have to use the same salary for much higher rates causing poverty and other problems as well. Especially when you are talking about the US their healthcare costs are sky rocketing and there is nothing that one can do about it. Therefore people won't be able to afford anything for the time being and then is the problem of people being treated improperly at their jobs causing them to resign .

[avikz]

We all know that Inflation in the US economy is at an alarming rate. Not the only USA, but Inflation is also a big problem for many countries globally, and it seems there is no way to stop it. Is it impossible to stop inflation in fiat currency or govt don't want to take any action it stop it? Do you think people can do anything to stop inflation in their economy or its inevitable?

There is no way to stop inflation. It can be managed to a certain extent only! Based on the size of economies, 2% - 4% inflation is expected  but when goes beyond that limit, that becomes a problem.

The only widely known method to manage inflation is to increase the interest rate. This way, the excess money can be sucked out of economy so that people b3come cautious and don't spend more. The affects the demand and thus the production. However, if the government has take debt from their countrymen through various bonds and savings certificates, increasing interest rate can bring more concern.

[hyudien]

Inflation applies to all countries which is indeed the only threat that will destroy their economy. Not only that. Unresolved inflation will gradually undermine all sectors, not only the economy, but will also cause a social crisis among the people that cannot be controlled. Demands for the country's leaders will stick out and become a very big demonstration. Defined as a form of government failure in managing the economy. It could even lead to a coup carried out by the people to overthrow the government.

[bitmover]

Is it impossible to stop inflation in fiat currency or govt don't want to take any action it stop it?

Governments make money from inflation. Inflation is good for governments.
They print money, use it, and only then (after their spending) inflation occurs. So we lose money after the government spend it.

It is somehow a different form of tax.

Do you think people can do anything to stop inflation in their economy or its inevitable?

It can do, but it is not popular.

Government like to raise salaries, spend money to make economy grow.

When government build roads, hospitals, etc jobs are generated, many people make money, etc, and inflation helps gonverment make these things happen.

Individuals can protect themselves buying gold, bitcoin, stocks..

[Gozie51]

Inflation is bad for low income earners and the artisan because they hardly have enough to feed, the little to feed with is being inflated leaving them on hardship. The government don't really have anything to lose as they benefit from budget and project from bribes that they don't depend on salary they get. It is really hard times in the world and majority of the people are on the poverty line. What makes the situation worse is that unemployment is rising daily.

[so98nn]

We all know that Inflation in the US economy is at an alarming rate. Not the only USA, but Inflation is also a big problem for many countries globally, and it seems there is no way to stop it. Is it impossible to stop inflation in fiat currency or govt don't want to take any action it stop it? Do you think people can do anything to stop inflation in their economy or its inevitable?

Government always does what they can do to reduce the inflation all the time. Thing is they always have to clear many things around the circle of national scope. We can not really blame they as to why are they not working on it; actually they are working but they have to face big deals of nation and its emergencies. Since they dont have single thing to do they would be exploring many many ways.

Inflation surely can be stopped but it takes outstanding planning. The root cause of the inflation needs to be identified first and then major steps start to pull off. For example, in the current situation USA failed in pandemic. The health care systems and strict rules of COVID protection made the situation worst throughout the nation. This led to poor employment circle, reduced job quality and thus money flow stopped.

Heavy stimulus packages were distributed on various instances and this made the central banks to print more money. So free money was getting paid out and thus inflation started coming out.

US need, big fix on businesses, employment and health care systems. Unless and until they do not come online, its gonna be another bad day for them.

[Charles-Tim]

We all know that Inflation in the US economy is at an alarming rate.

Probably you are from US and recent inflationary is the reason your created this thread, but know that US is far better than many other countries, you can use this classification to know the extent of inflation in a country.

Developed countries, less inflation
Developing countries and, more inflation
Underdeveloped countries, most inflation

US is still part of most developed countries, even US is still the number 1. Covid-19 affected all countries, while the money printing might contribute to this.

Is it impossible to stop inflation in fiat currency or govt don't want to take any action it stop it?

Yes, it is very possible, but the economy will be worse if the local currency is not devalued. The government regulate local currency price to prevent their foreign reserves. For example, if a country is more depending on export, the government will reduce the purchasing power of their local currency just to reduce the depletion of foreign reserves. So, inflation is also necessary and if not imposed by the government at the appropriate time, it can make the economy worse.

Do you think people can do anything to stop inflation in their economy or its inevitable?

Not possible, that is what fiat is for, this is the important aspect of fiat why government rely on it, for control and inflation purpose.

They print money, use it, and only then (after their spending) inflation occurs. So we lose money after the government spend it.

How about this also, for example, like a country that almost soly rely on crude oil like Nigeria, if the federal government want to be able to pay workers salary, they will sell crude oil, have the amount, devalue their local currency so they will be able to pay workers whereas, the purchasing power has also reduced, just an example. The government will have the money already but devalue it before paying workers.

[Kasabus]

Inflation is bad for low income earners and the artisan because they hardly have enough to feed, the little to feed with is being inflated leaving them on hardship. The government don't really have anything to lose as they benefit from budget and project from bribes that they don't depend on salary they get. It is really hard times in the world and majority of the people are on the poverty line. What makes the situation worse is that unemployment is rising daily.

As long as this covid 19 crisis will never stop, expect that the high rate of unemployment will continue to increase, leaving most of the people experience the state of poverty. But i don't think the government is not aware of it, and they are just not doing something to control it. The government will always consider the welfare of the people, but this inflation is starting to be in a state of out of control. And if its stays in that state for long, hyperinflation will occur as it will create continuous price surging for basic commodities. This is the reason why some countries think to shift into bitcoin knowing fiat is already highly inflated.

[Hydrogen]

Do you think people can do anything to stop inflation in their economy or its inevitable?

Inflation is similar to the Great Depression. Incidence of similar events are separated by a vast enough timeframe. That by the time conditions ripen for a period of high inflation or depression to occur. People have forgotten details of the previous crisis.

There is a trend in society, where many appear to believe they're better off not knowing details or basic mechanics of inflation. Which makes them powerless to do anything to address it. Power is knowledge and both are usually insufficient to countering trends like inflation.

Steps people can take towards reducing probability of inflation include basic steps like reducing reliance on government and making greater effort to be informed and aware. To fix inflation, we must first comprehend inflation. Everyone wants inflation to end. Yet few will become informed enough to support the right policies to address inflation.

[Sanitough]

Is it impossible to stop inflation in fiat currency or govt don't want to take any action it stop it?

Governments make money from inflation. Inflation is good for governments.
They print money, use it, and only then (after their spending) inflation occurs. So we lose money after the government spend it.

It is somehow a different form of tax.

Do you think people can do anything to stop inflation in their economy or its inevitable?

It can do, but it is not popular.

Government like to raise salaries, spend money to make economy grow.

When government build roads, hospitals, etc jobs are generated, many people make money, etc, and inflation helps gonverment make these things happen.

Individuals can protect themselves buying gold, bitcoin, stocks..

With the rising inflation that most of the countries are experiencing today, i see the chance to control this is very slim. And unfortunately, this will make the poor people become poorer seeing the prices continue to surge particularly for basic goods which means their money will be less valuable so it will reduce too the value of a currency's purchasing power. So making investments this time more particularly like bitcoin will protect us from inflation. Although this may not be the best option but it can be a great help not to put ourselves suffering from the peak of poverty.

[dothebeats]

Individuals can protect themselves from inflation by buying some investments such as bitcoin and gold, and other such assets that are somewhat protected to it. We, as individuals, cannot stop inflation, and the governments are the ones who can change it. Then again, they most probably wouldn't do it as they can lose profit by not printing more money. It's a double-edged sword that, if left unchecked, is very dangerous to a country's economy, as we can see in Venezuela right now.

[uneng]

Do you think people can do anything to stop inflation in their economy or its inevitable?

Very important question that I haven't seen anyone able to answer it so far. This should be being discussed at television news' channels, political campaigns and on the daily life.

We need more knowledge and informations to find an useful solution for inflation. But personally, I think if governments stopped printing money and raising public employees' wages and also minimum national wages, inflation should increase slower, at least.

[batang_bitcoin]

Is it impossible to stop inflation in fiat currency or govt don't want to take any action it stop it?

It can't be avoided but it can be delayed. I've seen that Japan did delayed the inflation.

Do you think people can do anything to stop inflation in their economy or its inevitable?

Yes it's inevitable and given that there's already the inflation. As someone who's going to be hit by it badly, we need to do something like hedging against it through our investments. Making more source of income to cope up with the continuous price increase of almost everything. That's what we can do to at least deal with it.

[odolvlobo]

Is it impossible to stop inflation in fiat currency or govt don't want to take any action it stop it? Do you think people can do anything to stop inflation in their economy or its inevitable?

Inflation is always and everywhere a monetary phenomenon. — Milton Friedman, 1963

The Federal Reserve created USD inflation, and it can end it.

In 1979, the USD inflation rate was about 9%. In October, Federal Reserve Chairman Paul Volcker announced plans to end inflation by taking actions that caused interest rates to rise to extremely high levels. The inflation rate peaked at about 11% shortly after, but then dropped to 6% in 2 years and 4% after 3 years. It continued to drop to the relatively low levels we have been seeing for the last few decades.

Another effect of the rise in interest rates was a short but severe recession. The economic pain caused a huge political backlash, and it was probably why President Jimmy Carter was not re-elected (even though he should receive some of the credit for the decades of economic expansion that followed).

Now we are facing the same situation. It remains to be seen if Biden will risk a second term to combat inflation, and if Powell has the balls to end inflation like Volcker did.

Note: if inflation were measured now as it was in 1979, it would be far higher than 9%.

Also note: This recession is the source of the term "Generation X" because the generation becoming adults at the time were expected to never recover economically.

[Wexnident]

Is it impossible to stop inflation in fiat currency or govt don't want to take any action it stop it? Do you think people can do anything to stop inflation in their economy or its inevitable?

It's not that it's impossible, it's that they don't, and for good reasons. Completely stopping inflation would hurt the economy, and a balance must be maintained for it to actually benefit the economy. Now, what damages the current state right now is that inflation is rising at high levels. Levels that are not beneficial for the economy of the country. It's to the point that people are losing their purchasing power when they aren't even doing anything with it.

Rather than stopping inflation, a more apt term would probably be controlling it?

[Strongkored]

In my opinion, stopping inflation is very impossible that can be done just to pressure it not too high, actually inflation can also be used as an economic indicator, for example prices rise because the high demand, a lot of demand this happens because the economy of society is increasing but the production of goods has not been able to meet the demand so that prices become rising, as long as there is no hyperinflation all good, all countries will definitely experience it and will not be able to make it into zero inflation.

[Sebas.tian]

We all know that Inflation in the US economy is at an alarming rate. Not the only USA, but Inflation is also a big problem for many countries globally, and it seems there is no way to stop it. Is it impossible to stop inflation in fiat currency or govt don't want to take any action it stop it? Do you think people can do anything to stop inflation in their economy or its inevitable?

Government can eliminate or stop inflation from the country because they has the power to control everything in the country include fiat money and economy. Inflation is not inevitable to government or people because the government has what it takes to remove high rate of inflation down to low rate of deflation in the country, so that every citizens will feel the impact of deflation in the community

Government can legalized bitcoin in every part of the country to stop inflation by creating decentralized institution for people to learn more about decentralized currency in the country. Government can make it possible for every citizens to be educated about bitcoin and how to use it to create more opportunities that will reduce inflation totally from the country.

[Jawhead999]

Inflation can be stopped if the government can stop printing fiat out of thin air, the more they print the more circulation will be and it make fiat more worthless. As long as it's scarce and high demand, obviously it wouldn't got inflated. We as people has no way to stop inflation, we only can hope government to stop printing money over and over.

Government can legalized bitcoin in every part of the country to stop inflation by creating decentralized institution for people to learn more about decentralized currency in the country. Government can make it possible for every citizens to be educated about bitcoin and how to use it to create more opportunities that will reduce inflation totally from the country.

If the stuff's price is still fixed using USD/fiat currency and not in satoshi, I believe it wouldn't stop inflation as the price aren't mainly from Bitcoin but their fiat. I don't think there's a country will only accept Bitcoin as their main legal tender, they'll only accept as alternative.

[adzino]

Inflation is a big problem! It destroyed few countries in the past and will destroy more in the future. When inflation goes out of control, the price of the goods sky rockets. The general living cost increases, but the purchasing power of the people stays the same or goes down. Hence people can't afford anything while their currency becomes worthless.

Is it impossible to stop inflation in fiat currency or govt don't want to take any action it stop it?

It is possible to stop inflation and reverse it. It is called deflation. And the government does try to take different monetary and fiscal policies to stop it.