👨🎓 Inflation and deflation - understanding the two sides
**6/52** Macro Mornings Education
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Hi everyone,
Today, we’re going to explore two critical concepts in macroeconomics - inflation and deflation.
Understanding these can help you protect your wealth and make smarter financial decisions.
Inflation
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. , if the inflation rate is 3% per year, a product that costs $100 today will cost $103 next year.
Over time, this can significantly reduce the value of your money if your income doesn’t keep up with rising prices.
A practical example: Let’s say you have $10,000 in a savings account that earns 1% interest annually.
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