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Inflation means sitting on cash piles makes no sense: it spurs investment.
by hkt 3y ago
Inflation means sitting on cash piles makes no sense: it spurs investment.
- igsomething 3y agoExcept every investment becomes high-risk. Businesses cannot make financial plans/projections because of the uncertainty created by the same inflation. Depending on the inflation percentage, the furthest you could plan ahead could be up to a couple of months. Would you make long-term investment in an economy where companies cannot predict what is going to happen in the next 3 months?
- hkt 3y agoIf I was losing 10%+ a year I absolutely would. I'm sure not everyone would,but the present rate of investment is absolutely dire and needs to change. If inflation does that, then great. If instead it puts more onus on the state to invest as the only major player who would.. then that's also great.