Understanding Inflation: Price Rise & Purchasing Power 📉

What is Inflation?
Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly. In this video, we will explore what inflation is, how it is measured, and why it is important. We will discuss the causes of inflation, such as an increase in demand or a decrease in the supply of money, and how central banks use monetary policy to manage inflation. We will also highlight some of the effects of inflation, such as its impact on the value of money and the distribution of wealth. Whether you are an economist or just curious about this fundamental economic concept, this video is for you.