ECONOMICS

Inflation and its effects

Inflation and it effects

Inflation and investment

Inflation and investment are driven by the same tool: the interest rate, but in reverse. On the side of inflation, shrinking the power of money, on the other, it multiplies.

Given this, you must take care that your money will not lose value having it reversed. And here are three ways.

If you have invested some money, and the interest rate on that investment is less than the inflation rate, for you have lost: you have more money but will buy less stuff than before.

If the interest rate on your investment is equal to that ...