Is Inflation Necessary

[sunsilk]

Inflation has happened in almost every country. It usually happens after a natural disaster.

Not only every time there's a natural disaster. Actually, it happens yearly and for most, it happens monthly. The world is in interconnected to each other mostly to the countries that import their products.

But to those that have their own sustainable way of living and they don't need products outside their country then, they're the ones that likely won't get that much inflation.

Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation.

Every country, affected or not by the covid-19 virus got their own rates of inflation.

[MissNonFall9]

Inflation has happened in almost every country. It usually happens after a natural disaster. Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation. Moreover, countries that are dependent on other countries for various products and grain products are also affected by inflation very quickly. Because when the import of goods is stopped, the demand increases and when the supply is less, the price of goods increases and the money man decreases.

A high level of expenditure or inflation plays an important role in maintaining the economic growth or progress of any country. That is why after any type of disaster, the disaster-affected countries use inflation as a strategic objective to boost their economy. Incremental and limited price increases keep any business profitable because inflation prevents any buyer from waiting to buy at a lower price. So the economy of the country where the business institutions and companies gradually improve becomes stronger.

[Freeesta]

It is difficult to say whether it is good or bad if a country has a high level of inflation. With inflation, economic growth occurs, and this means the expansion of production, the introduction of new technologies in production, the formation of savings for subsequent investments. However, at this time, people’s incomes decrease, the key interest rate on loans increases, and purchasing power decreases. Which of the following is a good process? This is a phenomenon that is difficult to control.

[JMBitcointernational]

The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings?

just like you earlier stated that inflation occurs when the price of goods and services are high people cannot be able to afford their needs, inflation occurs as a result of economic crunch, when there is economic crisis which the rapid of good and services. it usually affects money because money is legal tender and inflation usually anything that is used as a medium of exchange because people solely depend on the legal tender in other to meet their desired needs in terms of buying and selling of goods and services. note that inflation is driven by too much demand relatively to supply. when the prices of goods and services increases rapidly thereby making it very unable for people to meet their needs.

For me inflation is not necessary, but it depends on the government policy because every ruling government has their reasons for inflation, maybe because of subsidy removal, increase or decrease in the oil demands and many more other reasons that they can give. inflation actually cause more harm than good to the poor masses .

[dezoel]

It is difficult to say whether it is good or bad if a country has a high level of inflation. With inflation, economic growth occurs, and this means the expansion of production, the introduction of new technologies in production, the formation of savings for subsequent investments. However, at this time, people’s incomes decrease, the key interest rate on loans increases, and purchasing power decreases. Which of the following is a good process? This is a phenomenon that is difficult to control.

I think inflation has never been good and the higher its rates the worst because this means that the price of the goods are at their all-time high and if not, it was also the value of the currencies are the ones who are declining. People losing jobs are I think part of it and as well as the deterioration of an economy, so IDK know what you are talking about there or where did you get that info when you are saying the opposite of what I've said.

Even if there are no inflations or economic problems, there are just abusers around us and this makes our situation in life worse but we still can do something like ignore them, or much better if we will report them to the higher authorities.

[Zoomic]

It is difficult to say whether it is good or bad if a country has a high level of inflation. With inflation, economic growth occurs, and this means the expansion of production, the introduction of new technologies in production, the formation of savings for subsequent investments. However, at this time, people’s incomes decrease, the key interest rate on loans increases, and purchasing power decreases. Which of the following is a good process? This is a phenomenon that is difficult to control.

Only creeping inflation where the prices of goods rise slowly can be said to be beneficial to the economic growth of a country, anything aside this has no benefit and should be controlled seriously. Currently we have crossed our boundaries as far as inflation is concerned, we have passed that stage where we see inflation as a solution to our economic issues because there are lots of abnormalities in the prices of commodities and services which has resulted in high costs of living and unfavourable standards of living for most people. Maybe some political leaders often benefit from hyper inflation in their countries because most of the decisions they make which are supposed to be for the good of the people often end in more economic hardships for thesame people.

[tabas]

For me inflation is not necessary

It's based from our opinion that inflation isn't necessary but we have to admit and accept the fact that it is necessary and it is never going away.

but it depends on the government policy because every ruling government has their reasons for inflation, maybe because of subsidy removal, increase or decrease in the oil demands and many more other reasons that they can give. inflation actually cause more harm than good to the poor masses .

Nope, it won't be depending to government policies but somehow it has a connection to it but entirely going to be dependent on it. The entirety of the inflation will depend on how your country's economy is doing. If you're performing worse, your GDP drops down and every politician isn't doing good. Then, you have to accept the reality that this is going to be a major thing that you won't be able to skip it. Whether we like it or not, that's the reality of inflation that we have no control over it. The government can make such policies but it won't utterly stop it.

[Yudhisthir]

The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings?

Economics is quite complicated and I'm not an expert but inflation is the result of ever increasing demand. Like the interest rates on loans in bank increases when the demand for loan is high and in high loan demand, the interest on saving increases too.
When the demand for product and services increases, the price for it increases as more people would want to acquire the limited product and service and as the price increase, the business of producing that product and services looks profitable and more people are involved in production in anticipation of demand.
Natural inflation is increase in demand.

[xmonkeyx]

I think inflation has never been good and the higher its rates the worst because this means that the price of the goods are at their all-time high and if not, it was also the value of the currencies are the ones who are declining. People losing jobs are I think part of it and as well as the deterioration of an economy, so IDK know what you are talking about there or where did you get that info when you are saying the opposite of what I've said.

Even if there are no inflations or economic problems, there are just abusers around us and this makes our situation in life worse but we still can do something like ignore them, or much better if we will report them to the higher authorities.

Not necessarily inflation is all bad, along with increasing inflation, salaries or wages and income also tend to increase, although purchasing power may not increase significantly but a nominal increase in income can give people a feeling of being more financially capable. This has the potential to increase confidence in spending and investment, all of this also depends on government policies in seeking to increase people's economic growth, of course, by increasing targeted desector subsidies.

[Berry2d]

To me I think inflation is necessary.
Firstly inflation helps to control the movement of goods in a country.
Secondly, I see inflation as a means of determining the strength of a currency of a particular country.
It's also a means of controlling an excessive money in circulation in a particular economy or country. So I think inflation is necessary.

[Stablexcoin]

To me I think inflation is necessary.
Firstly inflation helps to control the movement of goods in a country.
Secondly, I see inflation as a means of determining the strength of a currency of a particular country.
It's also a means of controlling an excessive money in circulation in a particular economy or country. So I think inflation is necessary.

You have no solid reason why inflation is necessary. Even if it is necessary, the rate at which it increases is what is annoying. And the most painful part is that workers' salaries are not increasing just like how inflation increases in the world.

Inflation doesn't determine the strength of a currency, you are very wrong on that statement. Even the current with the highest currency face challenges that other countries face. For instance, in the US, there are difficulties in real estate and apartment which came as a result of inflation, these same problems occur in other countries as well.

[Freddie Boyer]

Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation.

Every country, affected or not by the covid-19 virus got their own rates of inflation.

Yes and that's true even though we know that the impact of the last pandemic was quite significant in ravaging the economy because all state funds were used for handling and recovering from the pandemic at that time.

And now perhaps inflation can be said to be more painful than the pandemic. Everyone experiences how money is no longer valuable when they shop for basic necessities.

I think the government needs to step in and immediately calm all this chaos.

[Marvell1]

Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation.

Every country, affected or not by the covid-19 virus got their own rates of inflation.

Yes and that's true even though we know that the impact of the last pandemic was quite significant in ravaging the economy because all state funds were used for handling and recovering from the pandemic at that time.

And now perhaps inflation can be said to be more painful than the pandemic. Everyone experiences how money is no longer valuable when they shop for basic necessities.

I think the government needs to step in and immediately calm all this chaos.

Inflation has existed for hundreds of years in our economy and the Covid pandemic has only made it worse rather than being the leading cause of inflation. Many people seem to only start to care about inflation since they invested and they always emphasize that inflation is due to the pandemic, the government printing money...They do not know that there are many causes of inflation and that it always exists even when our economy grows well.

The government is still trying to reduce inflation and raising interest rates is one of their many efforts. But the problem of controlling inflation is not as easy as we think, we don't just need to stop printing money and inflation will disappear, things are not that easy.

[arufox]

In my opinion, every country experiences inflation, but inflation is not too high. What the country doesn't want is deflation because deflation has a terrible effect on the market so that there is no economic growth for the country.

[odunybiz]

Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation.

Every country, affected or not by the covid-19 virus got their own rates of inflation.

Yes and that's true even though we know that the impact of the last pandemic was quite significant in ravaging the economy because all state funds were used for handling and recovering from the pandemic at that time.

And now perhaps inflation can be said to be more painful than the pandemic. Everyone experiences how money is no longer valuable when they shop for basic necessities.

I think the government needs to step in and immediately calm all this chaos.

Inflation has existed for hundreds of years in our economy and the Covid pandemic has only made it worse rather than being the leading cause of inflation. Many people seem to only start to care about inflation since they invested and they always emphasize that inflation is due to the pandemic, the government printing money...They do not know that there are many causes of inflation and that it always exists even when our economy grows well.

The government is still trying to reduce inflation and raising interest rates is one of their many efforts. But the problem of controlling inflation is not as easy as we think, we don't just need to stop printing money and inflation will disappear, things are not that easy.

Inflation isn't a news anymore in all part of the world. Most countries has planned to reduce this by stopping to print more money because it is believed that inflation is as a result of too much money chasing inadequate goods in the economy. And this is the main reason why it's difficult for this country to stop inflation because their government only focus on one side of the coin. Why can't they try to improve the economy? Why can they try to improve on creating more goods to meet up with the available money. Although both inflation and deflation has significant effect on the economy as well as the community. So the government should try and make a significant balance between the two for a better economic growth.

[slapper]

Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation.

Every country, affected or not by the covid-19 virus got their own rates of inflation.

Yes and that's true even though we know that the impact of the last pandemic was quite significant in ravaging the economy because all state funds were used for handling and recovering from the pandemic at that time.

And now perhaps inflation can be said to be more painful than the pandemic. Everyone experiences how money is no longer valuable when they shop for basic necessities.

I think the government needs to step in and immediately calm all this chaos.

Inflation has existed for hundreds of years in our economy and the Covid pandemic has only made it worse rather than being the leading cause of inflation. Many people seem to only start to care about inflation since they invested and they always emphasize that inflation is due to the pandemic, the government printing money...They do not know that there are many causes of inflation and that it always exists even when our economy grows well.

The government is still trying to reduce inflation and raising interest rates is one of their many efforts. But the problem of controlling inflation is not as easy as we think, we don't just need to stop printing money and inflation will disappear, things are not that easy.

inflation isn't new. Prices have always fluctuated in economies. Not just a pandemic or policy, but many kinds of events provoke this. People have more money to spend when economies are thriving, which boosts demand for products and services. Unless firms can meet demand, prices will rise. In summary, inflation. So the true question is how to handle inflation, not why it happens. Raising interest rates is a typical government tool. Higher rates increase borrowing costs, which are supposed to reduce spending and chill the economy

Interest rate hikes aren't magic. Numerous unforeseen effects can result. Business expansion, innovation, and job creation are hindered by higher rates. Layoffs, budget cuts, and a distinct economic slump can result. A precise balance is needed, and interest rates are just one factor. Our economy needs long-term solutions like structural reforms that make it more resilient to shocks and an educated populace

[electronicash]

Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation.

Every country, affected or not by the covid-19 virus got their own rates of inflation.

Yes and that's true even though we know that the impact of the last pandemic was quite significant in ravaging the economy because all state funds were used for handling and recovering from the pandemic at that time.

And now perhaps inflation can be said to be more painful than the pandemic. Everyone experiences how money is no longer valuable when they shop for basic necessities.

I think the government needs to step in and immediately calm all this chaos.

Inflation has existed for hundreds of years in our economy and the Covid pandemic has only made it worse rather than being the leading cause of inflation. Many people seem to only start to care about inflation since they invested and they always emphasize that inflation is due to the pandemic, the government printing money...They do not know that there are many causes of inflation and that it always exists even when our economy grows well.

The government is still trying to reduce inflation and raising interest rates is one of their many efforts. But the problem of controlling inflation is not as easy as we think, we don't just need to stop printing money and inflation will disappear, things are not that easy.

inflation isn't new. Prices have always fluctuated in economies. Not just a pandemic or policy, but many kinds of events provoke this. People have more money to spend when economies are thriving, which boosts demand for products and services. Unless firms can meet demand, prices will rise. In summary, inflation. So the true question is how to handle inflation, not why it happens. Raising interest rates is a typical government tool. Higher rates increase borrowing costs, which are supposed to reduce spending and chill the economy

Interest rate hikes aren't magic. Numerous unforeseen effects can result. Business expansion, innovation, and job creation are hindered by higher rates. Layoffs, budget cuts, and a distinct economic slump can result. A precise balance is needed, and interest rates are just one factor. Our economy needs long-term solutions like structural reforms that make it more resilient to shocks and an educated populace

i think it's okay for a country to hike interest rates and gradually kill the demand to balance the economy. but if it is the US that does this hike in interest rates, it affects every country in the world for they own the currency reserves.

this 2024 i think it's not just inflation that is affecting lives because companies are doing some layoffs and employing AIs already which is not going to hire people anymore but robots. well, at least there are many of us going down together.

[0t3p0t]

The bitcointalk forum is comprised of diverse people from all over the world. Our countries' must have gone through inflation as a nation at least once or more since its history. As a refresher, inflation happens when the prices of goods and services rise and people can no longer afford those items because the country's money almost becomes useless. But is inflation needed? Why can't we just keep the currency at the same value? And why does it only happen to money? For example, the same wouldn't happen if we used gold as a currency instead. Is inflation a ploy that the government uses so people don't get rich off of savings?

Fiat money is just a piece of paper or steel alloy that has a way much lesser value than those precious metals like gold and silver the only thing that keep us holding and using it is the trust the government has put into it so we can use it as a store of value. I don't know much about inflation but I think the best thing to do to prepare for it is to hodl assets that are inflation proof like cryptocurrency, precious metals and I think real estate is good as well.

[Marvell1]

Currently, most of the underdeveloped countries that have inflation are also affected by corona. The countries that could not recover from the shock of corona are now the victims of inflation.

Every country, affected or not by the covid-19 virus got their own rates of inflation.

Yes and that's true even though we know that the impact of the last pandemic was quite significant in ravaging the economy because all state funds were used for handling and recovering from the pandemic at that time.

And now perhaps inflation can be said to be more painful than the pandemic. Everyone experiences how money is no longer valuable when they shop for basic necessities.

I think the government needs to step in and immediately calm all this chaos.

Inflation has existed for hundreds of years in our economy and the Covid pandemic has only made it worse rather than being the leading cause of inflation. Many people seem to only start to care about inflation since they invested and they always emphasize that inflation is due to the pandemic, the government printing money...They do not know that there are many causes of inflation and that it always exists even when our economy grows well.

The government is still trying to reduce inflation and raising interest rates is one of their many efforts. But the problem of controlling inflation is not as easy as we think, we don't just need to stop printing money and inflation will disappear, things are not that easy.

inflation isn't new. Prices have always fluctuated in economies. Not just a pandemic or policy, but many kinds of events provoke this. People have more money to spend when economies are thriving, which boosts demand for products and services. Unless firms can meet demand, prices will rise. In summary, inflation. So the true question is how to handle inflation, not why it happens. Raising interest rates is a typical government tool. Higher rates increase borrowing costs, which are supposed to reduce spending and chill the economy

Interest rate hikes aren't magic. Numerous unforeseen effects can result. Business expansion, innovation, and job creation are hindered by higher rates. Layoffs, budget cuts, and a distinct economic slump can result. A precise balance is needed, and interest rates are just one factor. Our economy needs long-term solutions like structural reforms that make it more resilient to shocks and an educated populace

I agree, increasing interest rates is like a double-edged sword. It can help control inflation, but if we overuse it or do not make appropriate adjustments, it can easily cause the economy to fall into recession. But the problem is that besides raising interest rates, do we have any more perfect solution to curb inflation?

I am not an economic advisor and do not have much knowledge about economics, I've tried researching but haven't really found any other effective solution. I really want someone who can come up with serious solutions to discuss together.

[Kriptogram14]

Fiat money is just a piece of paper or steel alloy that has a way much lesser value than those precious metals like gold and silver the only thing that keep us holding and using it is the trust the government has put into it so we can use it as a store of value. I don't know much about inflation but I think the best thing to do to prepare for it is to hodl assets that are inflation proof like cryptocurrency, precious metals and I think real estate is good as well.

I agree with what you said, it's better to save a lot of assets in currencies that can withstand inflation, increase assets in precious metals, gold jewelry and have assets in crypto, because now fiat money is very low in price, just 100 thousand is now no longer meaningful, Now that prices continue to rise, our economy is increasingly screaming about inflation, so from now on we have to save lots of assets in the form of precious metals and crypto assets which later when we need them we can exchange them for fiat money or rupiah.