In economics, controlled low inflation is, so to speak, a GOOD thing. Why? It’s simple-people don’t "hoard money in a closet", but rather spend or invest it to avoid a loss in value. The flow of money in the economy is like the flow of blood in our bodies-when there’s blood flow, the body is strong and functioning properly.
But if inflation becomes uncontrollable and high, it leads to problems. Currency devaluation = rising prices = rising costs = falling incomes = reduced purchasing power....
And as a rule, this is accompanied by the printing of excess money that is not backed by anything. And it is the country’s most low-income citizens who suffer the most in such situations.
Conclusion: mild inflation = an acceptable process; high inflation = a major problem for the population and the economy as a whole
There are also countries that, because of the war, are forced to print money uncontrollably. Every week, the Central Bank of the Russian Federation issues over 5 trillion rubles through the repo system. This process will certainly drive inflation up to several tens of percent. The bald old woman has decided to screw all this. As long as there's money for the war, which he can't end up losing.
This year, everyone in Russia will have to tighten their belts severely. What has high inflation led to so far? Citizens have started pawning jewelry, electronics, and other items. This year alone, almost 500 billion rubles have been issued. These are the consequences. And this is just the beginning.
