Eli5, Why do people raise prices during inflation?

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Doesn’t that make inflation worse?

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Inflation is the process of currency losing value. Same thing why you can not just print more money: if you have 100 bucks in you country budget that are backed by various economic means, if you print 100 more, you would have 200 bucks, but each dollar would be half as valuable, and when this change propagates through the economy, prices would double too. Unfortunately, salaries do not change as quickly, so for a normal person, this looks like prices went up, when in reality, prices still represent the same amount of goods, its that currency that is used lost its value, so you need more of it to get same amount of goods. And salary still pays same amount of currency, but now it has less value, so you can buy less with it.

For example, as before: country had 100 bucks of economic value (in industries, resources, and other things), but then printed 100 more dollars. Now same amount of worth (those industries, resources and other things) are spread not among 100 dollars, but among 200 dollars, so each dollar has only half of value of the pre-inflation dollar. Now lets image someone is paid 5 bucks each month. After inflation, salary is still 5 dollars, but these dollars are half as valuable as before. Prices are able to react quicker, so they double and now you can buy half as many things as before

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