Why Is Inflation Sometimes Good for You?

Examples

1. When your mom borrows money from the bank at a low rate during inflation, she uses it to start a new bakery, and you get more cookies to eat.
2. Your grandma’s pension is fixed, but because of inflation, she can’t buy as many eggs as she used to. But your dad’s company gets cheaper loans, so he expands his business.
3. Inflation makes the price of toys go up, but it also means you can borrow money from your uncle at a lower rate, and you get a new bike for Christmas.

More examples

See also

• Why Are Some Things Always Getting More Expensive?
• Why Do Inflation Rates Go Up When Everyone's Spending More?
• What causes inflation to rise and how do central banks fight it?
• What is Cost-push inflation?
• How Do ‘Savings Accounts’ Help People Grow Their Money Over Time?

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