Inflation is an environment in an economy where prices of goods and services are increasing subsequently. The purchasing power of the currency is reducing.
During the inflationary environment the cost living for the public increases. To keep the inflation on check central bank tightens the liquidity (money supply) in the system to balance the inflation to attain price stability thus intends to promote stable financial environment.
We at Traders Hut intend to share the knowledge of financial world as ‘We believe sharing is caring‘
In our next educational series we would discuss on ‘Deflation‘
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