Chapter 11 Inflation—Just a Little Bit

Inflation is a symptom, not the root cause of an illness. Various economic factors interact and then inflation can crop up and have a huge influence on interest and currency exchange rates, consumer spending, savings, and corporate profits. Inflation is also very similar to plumbing in an old house. If it starts to leak it is not always easy to tell where it is coming from or how to fix it. If you can not stop it, it may get out of control and cause significant damage. A country also does not want inflation to run too hot or too cold. Just like trying to adjust the temperature in a tricky shower—if it runs too hot you can get burned and if too cold, things shrivel up.

All investible countries have some measures ...

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