Skip to main content

Good and bad inflation.


Näytä lähdekuva

Inflation is decreasing the value of the currency. Sometimes some people say that inflation makes the interest of loans negative. That means the value of the currency drops so fast that the interest of loans cannot cover the loss of the currency's value. Maybe that thing is good for somebody, but that is a bad thing for banks. The interests of loans are meant to cover the expenses of the bank. 

So when the bank would not get what it calculated, that thing means that those negative interests are left as bad debt. The thing that if the private person gets to benefit from the loans of the inflation person requires the inflation adjustments for the incoming. 

The problem with inflation is that it affects the prices of every product. Inflation is increasing prices. And another term for that thing is that costs of living increasing. There is the tale that little inflation is tolerated and helps economics. Of course, that thing can be true. But that requires that people have currency loans. Or they can change their currency whenever the value of a currency is changing. 

When we are talking about the loss of the value of the currency, we can talk about two types of inflation. Normally inflation means the loss of the buying force of money. So the value of the currency is lost internally. But the value of the currency is stable to other currencies. 

In another version of inflation, the value of currency turns weak. In comparison to other currencies. The phenomenon is similar to devaluation, but that thing happens spontaneously. Term devaluation means that the outer value of currency turns weak in purpose. But the spontaneous devaluation where the currency loses its value spontaneously can describe as "outer side inflation". 

Controlling the changes in the value of the currency is the key element in economics. The inflation adjustments are the interesting thing. But they can accelerate inflation. The major reason for inflation is that. There is too much cash or free money in markets. 

So inflation adjustments can mean that the central bank just makes more money for the markets. And because there is less other property the value of money will decrease because there is more money for the property. 

Labels:

Comments

Post a Comment

Popular posts from this blog

Antimatter motor

Antimatter motor Antimatter would be an effective fuel for interstellar spacecraft Antimatter would be the most effective power source in the world. It will be the most suitable motor for interstellar spacecraft, but the problem is that thing is very reactive. And actually one of the biggest problems with this kind of motor is that the gram of antimatter would turn the entire planet to the molecular nebula. So this kind of motor can produce only outside of our solar system. Producing antimatter would need large particle accelerators, and that kind of systems might look like giant donuts, what is floating on the space. There are two ways to create the antimatter motor, one is to store the anti-ions in the magnetic bottle, where the pushing magnetic field will keep those ions away from the wall of the bottle, and then the antimatter would conduct to the water or some other particle. The huge explosion or annihilation reaction would send the rocket to a very high speed. The antimatt...
Post a Comment
Read more

The cyborg lichen can be one of the most exotic visions of what the high-tech civilization might look like.

.     The cyborg lichen can be one of the most exotic visions of what the high-tech civilization might look like. Above is the image of the nano-submarine. There is introduced an idea, that this kind of system would equip with living neurons, which makes it like some kind of artificial bug or mosquito. The idea is that the robot can take the nutrient by using the robot tube, which acts like a proboscis. The neurons can get nutrients and the rest of the machine can use small fuel cells or the energy to that system can deliver by using the radio waves. Futurologists are thinking about the ideas, what the hybridization of the neurons and machine would look like? Could the hyper-technical civilization look like the group of midget submarines? Those submarines might take nutrients for the neurons, what is living in them. The purpose of the midget submarines, which might be size less than a couple of millimeters would maximize the survivability of the neurons. One of the most intere...
Post a Comment
Read more

Could this be the thing, that some people don't want you to know about zombies?

Could this be the thing, that some people don't want you to know about zombies? The simplest way to control zombies, which are made by using tetrodotoxin, which is called "zombie poison" is to use the automatic dispenser, which is normally used in diabetes treatment. In this case, the dispenser would be loaded by using tetrodotoxin. If the level of this poison is right, the person would be totally under the control of other people. And if the system cannot detect this poison there is a possibility to make the laboratory experiment when the staff will follow the decrease of the tetrodotoxin, and then the system can use a simple clock, which will inject poison to the body of a victim after a certain time. This would be an effective tool in the hands of military and counter-terror operators. Those zombies can be captured enemy operators, who will send back, and then they just kill their ex-partners. By using genetically engineered bacteria could be possible to create t...
Post a Comment
Read more