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. 


https://networkedinternet.blogspot.com/

Comments

Popular posts from this blog

Schrödinger's cat: and the limits of that idea.

"In quantum mechanics, Schrödinger's cat is a thought experiment concerning quantum superposition". (Wikipedia, Schrödinger's cat). But the same thing can use as model for many other thought experiments.  Sooner or later, or at least in the ultimate end of the universe, the Schrödinger's cat will turn into wave movement. The information that this cat involved exists but the cat does not exist in its material form. The information doesn't ever vanish. It just turns its shape.  We are all trapped in the universe and time. The universe is the space that is entirety to us. There are no confirmed other universities. But the multiverse is a logical continuum for the expanding galactic megastructures.  The problem with natural things is this. They are black and white. They exist or do not exist. Could there be something, that exists and not exists at the same time?  Scrödinger's cat is thinking experiment about case their cat is not dead or not alive. But in this...

The string theory offers a new way to calculate Pi.

"Scientists discovered a new series for pi through string theory research, echoing a 15th-century formula by Madhava. By combining Euler-Beta Functions and Feynman Diagrams, they modeled particle interactions efficiently. Credit: SciTechDaily.com" (ScitechDaily, String Theory Unravels New Pi Formula: A Quantum Leap in Mathematics) People normally think that. The pi is the ratio of the circumference circle's circumference to the circle's diameter. The Pi is a mathematical constant 3.14159..., the endless decimal number. The Pi is interesting because developers can use that decimal number to make the encryption algorithms stronger.  The idea is that the encryptions program hides the message's original ASCII numbers by multiplicating those numbers with some decimal number. Or the system can add some numbers to those ASCII numbers.  "Aninda Sinha (left) and Arnab Saha (right). Credit: Manu Y" (ScitechDaily, String Theory Unravels New Pi Formula: A Quantum Le...

There are always more than three actors in the real world.

"An international research team is advancing precision timekeeping by developing a nuclear clock using thorium isotopes and innovative laser methods, potentially transforming our understanding of physical constants and dark matter. (Artist’s concept.) Credit: SciTechDaily.com" (ScitechDaily, Unveiling the Thorium Nuclear Clock and Its Time-Twisting Secrets) From Three-body problem... There are no pure three-body systems in nature. There are always more than three components in the system. For making real three-body systems we must separate those three bodies from the environment. Otherwise, there are stable effects. But nobody can predict some effects like distant supernova explosions or sun eruptions.  And one of those things that affect all bodies is time. When radioactive materials decay. That affects the stability and symmetry of the object.  Energy levels affect the existence of things like neutrons. The thorium atom clocks are next-generation tools for time measurement....