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The reality in economics is that a boom cannot last forever.

 


The reality in economics is that a boom cannot last forever. And after the boom period, the downturn is inevitable. That is the law in economics. Even the largest marketing areas cannot maintain a boom forever. So the economical downturn in the EUR area should not be surprising. What sizes are the damages that the downturn causes? 

That depends on how fast it is. And how long the boom continued before the downturn. If the boom continues for a long time and then the downturn is very fast the results of that thing are devastating. That thing causes lots of bankruptcies and unemployment. The bad economical situation can turn worse if there is some kind of civil disorder or some kind of suspicion of the central government's skills and abilities to keep order and control the value of currencies. 

The case where inflation brings benefit is the case where inflation turns to deflation. Deflation is the anti-inflation where the value of the currency is increasing. If that thing happens soon after inflation and especially inflation adjustments that bring benefits for people. 

The thing that also causes suspicion is the loss of free information. The thing that accelerates inflation and rises in the prices of merchandise is the case that many people and companies are just moving their savings and investments to another country. When people are selling currency. That causes inflation. And inflation is not a good thing. 

When we are thinking about inflation and exporting merchandise. That means foreigners can buy our products at a lower price if they use some other currencies. But the problem is that inflation is seen in supermarkets and the prices of everyday products are increasing. And normal people are seeing that thing when they are going to the supermarket. 

If we want to get benefit from inflation that requires a situation where we can get more money from the products. Then the value of money must rise and the prices must turn low. That means only deflation brings the benefit from inflation. 


See terms: 


Deflation:


https://www.investopedia.com/terms/d/deflation.asp


Devaluation:


https://www.investopedia.com/terms/c/competitive-devaluation.asp


Inflation:


https://www.investopedia.com/terms/i/inflation.asp


Revaluation:


https://www.investopedia.com/terms/r/revaluation.asp


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