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> What monster keeps inflation so low as to make it impossible for regular people to earn anything on modest savings How would higher inflation help savers ear

• Spooky23 14y ago
  Higher inflation would lead the central banks (who want lower levels of inflation) to raise interest rates in order to control inflation. We've been living with nearly 5 years of historically low rates of interest and inflation due to fiscal stimulus measures. The nasty side effect of that is that it is nearly risk-free for people with surplus capital to hold onto that capital. Generally speaking, high inflation is bad for savers. But virtually no inflation is also bad for savers, as you get no return investment without incurring significant risk.
  • anamax 14y ago
    > Generally speaking, high inflation is bad for savers. But virtually no inflation is also bad for savers, as you get no return investment without incurring significant risk. "safe investments" don't outpace inflation. The only meaningful ROI accounts for inflation.