Why Inflation is a big problem for a country?

[Darker45]

Inflation is not really a big problem, inflation beyond target is. And it is not that there is no way to stop it, because economies desire it in the first place. So it is not a question of whether it is impossible to stop inflation or not as there is actually no attempt to stop it. In the current economic system, inflation is indeed an integral part. Inflation incentivizes a lot of things. Wages increase, loan value decreases, consumption increases, and so on. So prices of goods and services have to increase, albeit moderately.

[Moneyprism]

...inflation occurs because the government circulates scam currency to their citizens

...if they rely on bitcoin then inflation will run away

...the concept of a happy life is simple, exchange your country's currency for Bitcoin

[laredo7mm]

Inflation is not really a big problem, inflation beyond target is. And it is not that there is no way to stop it, because economies desire it in the first place. So it is not a question of whether it is impossible to stop inflation or not as there is actually no attempt to stop it. In the current economic system, inflation is indeed an integral part. Inflation incentivizes a lot of things. Wages increase, loan value decreases, consumption increases, and so on. So prices of goods and services have to increase, albeit moderately.

So all those media talking about the Inflation problem is total nonsense? I know Inflation is good in certain conditions like when we have a lot of unused resources and labor force then inflation can boost production. But too much inflation will slow down the economy because interest is high and peoples are more focused on savings, not spending. Less spending = fewer demands, fewer demands = less production, less production = less labor which causes the unemployment problem.

I do not think it's impossible to stop but we don't need to stop it on the other hand we don't need unnecessary inflation either.

[jrrsparkles]

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?

You need to know what is inflation to stop the inflation, and if you do then you won't be actually asking such questions.

People can't do anything about inflation and deflation its in the hands of the respective Central banks which comes under every country because they're the one who is printing money and deciding how much money printed every year, if you want the inflation rate to be zero the only possible solution is government should stop minting new money.

[virasog]

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?

Inflation cannot be stopped unless the money supply is limited. Since governments are all the time printing money, this will devalue the currency and is the major factor for inflation.
In order put the inflation on halt, either the government strictly do not allow printing of currency notes (which they will hardly stop) or start using a inflation free currency like bitcoin (which is also very unlikely).

[Reid]

US inflation and they think they are in the brink of destruction. No. That's just exaggerating things.
There are more countries with bigger problems than them. High inflation rates in third world countries and they won't stop printing more money or borrowing. Government will keep on doing this until everything goes well, or they think it is enough.
If it could provide more jobs for the people then it will equal the expensive rates in daily basis but people cannot manage to save. Inflation cannot be solved short-term, there must be a plan, it's not always that bad.

[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?

Inflation cannot be stopped unless the money supply is limited. Since governments are all the time printing money, this will devalue the currency and is the major factor for inflation.
In order put the inflation on halt, either the government strictly do not allow printing of currency notes (which they will hardly stop) or start using a inflation free currency like bitcoin (which is also very unlikely).

If the Fed stopped printing money then economical growth will be stopped or we can say it will not be visible. We need to understand why they print more money every month. Govt print more money to increase the demand for products and services. More demands mean more work for the people which will reduce the unemployment rate. People will have money in their pocket so they will spend more money which will give govt more taxes and boost the economy.

But printing more money to pay the debt is a very bad idea which most of the govt does and that is the reason Inflation destroying the economy not boosting it.

[Poker Player]

If the Fed stopped printing money then economical growth will be stopped or we can say it will not be visible. We need to understand why they print more money every month. Govt print more money to increase the demand for products and services. More demands mean more work for the people which will reduce the unemployment rate. People will have money in their pocket so they will spend more money which will give govt more taxes and boost the economy.

But printing more money to pay the debt is a very bad idea which most of the govt does and that is the reason Inflation destroying the economy not boosting it.

What is missing from the first paragraph of your argument, is that every time you repeat the word "money" it is an increasingly devalued thing. Governments have been in a forward flight since 1971, with a ball that keeps getting bigger and bigger, and an economy built on ever increasing debt that keeps growing.

They are now in a catch-22 situation: the economy is a junkie that needs the injection of central banks, but this injection causes inflation, which is getting higher and higher, which makes people poorer and poorer, no matter how much people earn (except in some cases where the wage increase can beat inflation).

If they stop injecting: economic growth falls.
If they keep on printing: more and more inflation.

They have a hard time.

[macson]

If the Fed stopped printing money then economical growth will be stopped or we can say it will not be visible. We need to understand why they print more money every month. Govt print more money to increase the demand for products and services. More demands mean more work for the people which will reduce the unemployment rate. People will have money in their pocket so they will spend more money which will give govt more taxes and boost the economy.

But printing more money to pay the debt is a very bad idea which most of the govt does and that is the reason Inflation destroying the economy not boosting it.

if the US prints money then there is no need to worry about inflation because the dollar is used for international trade but if other countries do it then inflation will definitely happen....so far, the US has printed money to pay its debts and circulated it to the public, but the dollar exchange rate against other countries' currencies remains strong. other countries find it difficult to follow the US' steps, so admitting bitcoin as a legal tender is the best thing El Salvador has done to prevent their country from experiencing inflation.

[oHnK]

If the Fed stopped printing money then economical growth will be stopped or we can say it will not be visible. We need to understand why they print more money every month. Govt print more money to increase the demand for products and services. More demands mean more work for the people which will reduce the unemployment rate. People will have money in their pocket so they will spend more money which will give govt more taxes and boost the economy.

But printing more money to pay the debt is a very bad idea which most of the govt does and that is the reason Inflation destroying the economy not boosting it.

What is missing from the first paragraph of your argument, is that every time you repeat the word "money" it is an increasingly devalued thing. Governments have been in a forward flight since 1971, with a ball that keeps getting bigger and bigger, and an economy built on ever increasing debt that keeps growing.

They are now in a catch-22 situation: the economy is a junkie that needs the injection of central banks, but this injection causes inflation, which is getting higher and higher, which makes people poorer and poorer, no matter how much people earn (except in some cases where the wage increase can beat inflation).

If they stop injecting: economic growth falls.
If they keep on printing: more and more inflation.

They have a hard time.

Then what kind of economic conditions are the most ideal.  As explained in basic economics books, there have always been economic systems that have been fully regulated by the government, some have been regulated by the market to mixed ones.  They all have their advantages and disadvantages.  When we complain about the concept of inflation because it is fiat based, the other alternative is crypto, but crypto also cannot escape a financial industry bubble because no one controls it other than the market.  So what kind of economic system is ideal?

[laredo7mm]

If the Fed stopped printing money then economical growth will be stopped or we can say it will not be visible. We need to understand why they print more money every month. Govt print more money to increase the demand for products and services. More demands mean more work for the people which will reduce the unemployment rate. People will have money in their pocket so they will spend more money which will give govt more taxes and boost the economy.

But printing more money to pay the debt is a very bad idea which most of the govt does and that is the reason Inflation destroying the economy not boosting it.

What is missing from the first paragraph of your argument, is that every time you repeat the word "money" it is an increasingly devalued thing. Governments have been in a forward flight since 1971, with a ball that keeps getting bigger and bigger, and an economy built on ever increasing debt that keeps growing.

They are now in a catch-22 situation: the economy is a junkie that needs the injection of central banks, but this injection causes inflation, which is getting higher and higher, which makes people poorer and poorer, no matter how much people earn (except in some cases where the wage increase can beat inflation).

If they stop injecting: economic growth falls.
If they keep on printing: more and more inflation.

They have a hard time.

Then what kind of economic conditions are the most ideal.  As explained in basic economics books, there have always been economic systems that have been fully regulated by the government, some have been regulated by the market to mixed ones.  They all have their advantages and disadvantages.  When we complain about the concept of inflation because it is fiat based, the other alternative is crypto, but crypto also cannot escape a financial industry bubble because no one controls it other than the market.  So what kind of economic system is ideal?

A competitive and free trade market is ideal for the economy because production will only be done compared to its demands. There will be no one to control the price and product price will be decided by the people. This is called a market economic system where govt has no infrastructure and control over the resource. That means price and regulation are conducted by the consumer. Some experts suggest that a combination of capitalist and social economy is an idea but there is no practical proof of this theory. You can read more about various economic concepts from this article.

[Coyster]

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?

Inflation is mostly as a result of actions taken by the government, for example, the current high level of Inflation in the U.S. and around the world is as a result of many of the policies taken by the government do fight the covid-19 pandemic, lockdowns, printing of more money, etc, were all bound to cause serious Inflation and that's what's happening now and sadly it looks like it'll continue to rise. I don't believe there is no way to stop inflation, government can take counter measures to get things under control, of course that's if they want to, you never truly know what it is the government wants. But having said that, as a Bitcoin user, I use the coin as a hedge against inflation, and thus far it has worked perfectly for me.

[marilynmanson21]

because , Inflation has quite a number of impacts on a country's economy, including inflation that can erode people's purchasing power. If this condition decreases purchasing power, then people will be more economical to shop. In fact, one of the drivers of a country's economy is supported by public consumption. If people reduce spending, economic growth will automatically slow down or stagnate, it could even be lower.

Inflation also affects and harms consumers because salaries or income become stagnant, but expenses or expenditures swell due to rising prices for goods or services that are the main needs.

[hyudien]

if the US prints money then there is no need to worry about inflation because the dollar is used for international trade but if other countries do it then inflation will definitely happen....so far, the US has printed money to pay its debts and circulated it to the public, but the dollar exchange rate against other countries' currencies remains strong. other countries find it difficult to follow the US' steps, so admitting bitcoin as a legal tender is the best thing El Salvador has done to prevent their country from experiencing inflation.

Wait
Do you mean the US printing money all the time means you don't have to worry about inflation? How come, isn't the more money printed, the higher the inflation they will face? see now what happened to the US from printing too much money during the pandemic? the financial crisis that hit and even inflation was almost unstoppable with a percentage that exceeded last year's.

That's not the concept, and it's not as arbitrary as printing money and circulating it in all directions without thinking about the aftermath. In fact, the United States is now being demanded to reduce circulation, which was indicated when in early January it withdrew all circulation of money in order to re-stabilize inflation so that it would not swell.

[suzanne5223]

Technically, I can say the government don't want to take an action to stop inflation because they are advice not to print more fiat currency but they always choose to print more ridiculous fiat every year.
I believe they ought to have learn the solution of inflation through crypto currency but they always choose their own path and I believe that they print more money so they can steal from us.

[mia_houston]

because , Inflation has quite a number of impacts on a country's economy, including inflation that can erode people's purchasing power. If this condition decreases purchasing power, then people will be more economical to shop. In fact, one of the drivers of a country's economy is supported by public consumption. If people reduce spending, economic growth will automatically slow down or stagnate, it could even be lower.

Inflation also affects and harms consumers because salaries or income become stagnant, but expenses or expenditures swell due to rising prices for goods or services that are the main needs.

High inflation often causes chaos in the economy of a country, sometimes countries affected by inflation actually get pressure from the prices of goods that continue to rise high, but it is not accompanied by income received by the community so that their economic stability is often disrupted, I think the country should be able to you can keep inflation as low as possible if you don't want chaos to occur in society, because in my opinion low and stable inflation is the main requirement for the country  economic growth as well as improving the welfare of the people of that country.

[CryptoBuds]

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?

^ It is not that the government does not think or take action to curb inflation. The entire responsibility of a country is in the hands of the government such as, how the country will be developed, by which step the people of the country can be given a better life, etc etc.


Inflation hurts the country, the living standards of the people deteriorate, and poverty increases. No government wants his country to be underdeveloped slowly. Therefore, it is foolish to think that the government is not taking any steps to curb inflation on purpose. The government also has many limitations. He also has to maintain a lot.

Countries around the world, even the United States, are now plagued by inflation. Controlling inflation is not only the responsibility of the government. We can also try from our own position. Food storage can be very helpful in this case. If food is purchased before the price increases, it is stored properly. Then you will not have to suffer the pain of buying goods at higher prices.

[famososMuertos]

Okay! I am a man with responsibilities then when reading your title, what bounces back in my head is other again the same question: is inflation a problem for countries? really!!...yes, indeed it is an item that must be controlled but in practice it is a big problem for ordinary citizens, mainly the poor, how do you plan expenses at the end of the month for basic purchases, such as You plan to save to buy a house or a car or any valuable asset if the inflation at the end of the year is such that you cannot buy anything or what you projected.

Inflation is always there, it never ceases to be, it is alive and kicking but it is always in a nervous balance, supported by so many aspects that it is chaos when the balance is lost.

In general, the inflation that affects is the accumulated one, not the monthly one, that is why it is terrifying to have $100 and know that the next month those $100 do not buy the same. That there in a little colloquial words, without economic jargon, and I understand it because we all generally suffer from it.

Solution:
it is a controversial issue its control, there is no solution inflation is never zero, it is like entropy itself it is a necessary chaos, although politicians say that adjusting or controlling prices helps, in reality it is a sum of so many things that "healthy" economies they adjust to certain "pre-established" values, so an inflation of 1 digit is allowed, like the Richter scale of tremors that, even if it shakes, the damage caused by gravity is determined by the value of that scale.

The irony of these "assumed" values is that in a country like the United States there are millions of people going hungry, even if that rate is 1 digit.

[bitzizzix]

Inflation is the decline in the value of a currency over time. So while living on a steady income means your paycheck will buy less and less things as inflation continues.
and besides that those who are most negatively affected by inflation are those who survive on income from savings, because these savings will be eroded by inflation.
and those on low incomes and fixed incomes such as retirees due to inflation will have to spend a higher percentage of their income on basic needs, and also those who rent will suffer as they will face higher rent payments while at the same time house prices, prices land will rise.

[Ryker1]

Well of course --it is feasible to keep inflation under control, but if the local currency is depreciated, it will become more difficult to do so, making the economy worse. Inflation is controlled in a variety of ways some are effective, while others may have negative consequences. Controlling inflation through wage and price regulations, for example, can lead to job losses and a recession.
Stopping inflation, in my opinion, is a difficult task. Just simple as that.