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Another effect of inflation is that people are forced to invest and take on risk, in order to not lose their savings. I think this has a major effect on workfor
by Geee 5y ago
Another effect of inflation is that people are forced to invest and take on risk, in order to not lose their savings. I think this has a major effect on workforce productivity and mental health. Everyone has to watch markets and worry about their savings. Active investing is like having an extra job.
I don't think that inflation can be 'cured' in the current monetary system. Like he said, there is a cure, but there is no will. It is impossible for a society to resist the temptation of creating more money.
- pid-1 5y agoI've lived in Brazil during a few moments of inflation and it's actually the opposite. Our central bank will hike basic interest to control rising prices. That makes treasury bonds very attractive investments, while slowing down the rest of the economy.