We have brought you several articles on inflation and the fear of inflation. The fear of inflation is justified and it seems to be rising faster than expected. Let’s take a look at how inflation grows and what causes it.
Earlier and higher inflation
Former U.S. Treasury Secretary Lawrence Summers talked about the fact that all the data available are pointing to a higher inflation than he expected, and even earlier than he expected. He is not the only one, we can hear from other quarters that we should be more worried about inflation than we were a few months ago. The truth is that rising prices and fear of inflation are starting to affect different parts of the economy as the economy slows and businesses start to close. This could lead to more serious economic impacts in the future.
Businesses are closing
Summers warned earlier this year that the rapid increase in government spending combined with the Fed’s unprecedentedly loose monetary policy could result in large inflationary pressures in the United States. It is also worth noting that the consumer price index rose by 4.2% in April compared to the previous year. This is the fastest rise since 2008. The fear of inflation is therefore entirely justified and should be taken seriously.
How to alleviate the fear of inflation?
A possible alternative to protect yourself against inflation is to start investing and let your money work to make more money, or try another alternative to fiat currency, such as cryptocurrencies. PlatonCoin (PLTC), for example, brings together the best of a decentralized blockchain where you can use your money however you want and at the same time our wallets are insured so you don’t have to worry about losing your money. If you would like to learn more about PlatonCoin (PLTC), please contact us.