Home / Investment Bootcamp / Bootcamp Part 2 / learn monetary inflation in 2 minutes

learn monetary inflation in 2 minutes

Welcome to Professor Savings!

We teach finance basics. Hi I’m your host today Rayfil Wong.

Monetary inflation is  a sustained increase in money supply. Lets take an example.

Unicornville the country. Lets add up all the commodities. Commodities are items produced to satisfy wants or needs. Pigs, cows, buildings, and cars.

Let’s saw you add it all up and the total is worth $1 million dollars.

 So Unicornville has $1 million  $ 1 dollar bucks circulating in the market.

For example,  let’s say a house for $100 but Unicornville, the government but let’s say the government

decides to print an additional $1 million $1 dollar bucks so there is now $ 2 millions in the market

so now things cost twice as much.

so houses cost $200

Apples are now priced at $4 a pound instead of $2 a pound.

Sum it up Unicornville has $2million dollars or twice amount of bills but has half the purchasing power.

Printing  money is controlled by Unicornville.

bam!! Pretty  simple. But…

Why should you care?

Well..i f you are aware of the monetary inflation you can plan better financial future.

If you would like to learn more about finance basic subcribe to our channel now.

Professor Savings Signing off!

Comments

comments

About professorsavings

Check Also

Learn What Stocks are in 2 Minutes

Welcome to professorsavings.com, we teach finance basics. Today we will teach you what stocks are. …

how much can i save refinancing

How Much Can I save refinancing? – Professor Savings

How Much Can I save refinancing? Hi Welcome to professorsavings.com   We bring you daily …