What Is Inflation? How does it affect our personal lives? By Sarankan Sriskandarajah by https://padlet.com/sarankan/inflation Understanding how inflation can be beneficial to us en-us 2016-10-30 22:35:26 UTC 2024-08-29 18:27:39 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Manbag.png What Is Inflation sarankan https://padlet.com/sarankan/inflation/wish/134113390 Inflation Is represented as a percentage of how much your money can buy a service or good. The higher the inflation the more money you would need to buy the same service or good.]]> 2016-10-30 22:40:56 UTC https://padlet.com/sarankan/inflation/wish/134113390 IMAGE 1 - This  image represents what the core idea of inflation is. the higher inflation is the more currency you would use to buy the same amount of service or good sarankan https://padlet.com/sarankan/inflation/wish/134116027 2016-10-30 23:16:36 UTC https://padlet.com/sarankan/inflation/wish/134116027 IMAGE 2 - This is a clear depiction of what high and low interest rates accomplish in our economy. When interest rates rise there is lower economic growth and slower inflation of our dollar. However the reverse happens when our interest rates are lowered. There is more economic growth and there is faster inflation. Although interest rates can be lowered to have better economic growth the effect doesn't occur until 18 to 24 months after the rates have been changed. sarankan https://padlet.com/sarankan/inflation/wish/140357477 2016-11-28 22:23:22 UTC https://padlet.com/sarankan/inflation/wish/140357477 IMAGE 3 - Hyperinflation is the worst case scenario of inflation rates rising. This shows us that in the time of the picture, it cost more to pay for their heat then it does to burn their money and receive heat from that. In some countries even a loaf of bread can cost upwards of 100000 dollars in times of hyperinflation sarankan https://padlet.com/sarankan/inflation/wish/140358822 2016-11-28 22:33:24 UTC https://padlet.com/sarankan/inflation/wish/140358822 VIDEO 1 - This video reinforces the concepts that are depicted in the pictures . The example shows what a five percent increase in inflation rate can cause for the average shopper. according to this video most banks tend to keep the rates at an average of 2 to 3 percent inflation per year. The main thing with inflation is that at the same monetary value you are receiving less value from an asset and so to buy one thing will cost less or more money with higher or lower inflation rates respectively sarankan https://padlet.com/sarankan/inflation/wish/140377385 2016-11-29 01:35:44 UTC https://padlet.com/sarankan/inflation/wish/140377385 VIDEO 2 - This video outline the causes of inflation. There are three types of inflation that can cause inflation rates to rise or lower: Demand Pull, Cost Push and Administered prices. Demand pull is when there is an excess of aggregate demand for goods and services. Prices tend to go up because the economy is reaching its limit in terms of demand. Cost pull is when there are more costs that are being experienced by an economy that cause the inflation rate to increase to accommodate for the excess costs sarankan https://padlet.com/sarankan/inflation/wish/140377442 2016-11-29 01:36:11 UTC https://padlet.com/sarankan/inflation/wish/140377442 VIDEO 3 - this video outlines to positives and negative of inflation. some negative are that, consumers will suffer a loss in their purchasing power. Meaning that Inflation rates usually rise at a higher rate than incomes and so it becomes hard to live for the average family when inflation causes our goods and services to cost more than we can afford. Businesses will have to raise their prices to adjust with the raised inflation, decrease the amount of workers to cover cost which will ultimately lead to higher unemployment. sarankan https://padlet.com/sarankan/inflation/wish/140377488 2016-11-29 01:36:31 UTC https://padlet.com/sarankan/inflation/wish/140377488 WEBSITE 1 - http://www.bankofcanada.ca/2016/10/renewal-of-the-inflation-control-target-2016/ sarankan https://padlet.com/sarankan/inflation/wish/140389071
This website outlines the plan the Government of Canada has for inflation. The government came up with the three basic rules for keeping inflation under control. The first rule was to make sure to always keep the inflation rates within the optimal range set by the economists during the time. The range is 1 to 3 percent. The second rule was to try and keep the inflation rate at the midpoint of the range, therefore keeping the rate at 2 percent was seen as the optimal inflation rate. The third rule was that the target will continue to be defined in terms of the 12-month rate of change in the total Consumer price index which is a basket of goods of the most purchased items in our economy at the time.]]> 2016-11-29 02:08:28 UTC https://padlet.com/sarankan/inflation/wish/140389071 WEBSITE 2 - http://www.inflation.eu/inflation-rates/canada/historic-inflation/cpi-inflation-canada-2015.aspx sarankan https://padlet.com/sarankan/inflation/wish/140389994 This Website Shows the inflation rates based off the CPI and the rates for each month in 2015. From the table we can see that there was great fluctuation in the rates throughout the year and that there was always change in the inflation. the average rate of inflation in 2015 was said to be 1.13 percent. based on the previous website, the government tends to keep the rate at an average of two percent meaning that the inflation rates for 2015 were below the average. this also means that the consumer price index was priced lower than the previous years. ]]> 2016-11-29 02:17:34 UTC https://padlet.com/sarankan/inflation/wish/140389994 WEBSITE 3 - http://www.tradingeconomics.com/canada/inflation-cpi sarankan https://padlet.com/sarankan/inflation/wish/140390653 While the previous website showed the rates for last year. This website shows us the rates of inflation for this year up until 2016. The rate peaked at two percent at the start of the year and has since then been relatively stable around the 1.5 percent level. according to this website the cause for the increase based on last year is because of increasing transport and shelter costs and declining food costs.]]> 2016-11-29 02:25:18 UTC https://padlet.com/sarankan/inflation/wish/140390653 DISCUSSION QUESTION 1 sarankan https://padlet.com/sarankan/inflation/wish/140400506 While researching this Topic the most interesting thing that i learned that I didn't know previously was that it is more beneficial to sell assets such as real estate, properties and shares in times of high inflation because you are getting much more money for your assets than they are worth and as such you can earn more profit from selling at these times. Aside from that everything else is knowledge that was already known to me ]]> 2016-11-29 04:23:29 UTC https://padlet.com/sarankan/inflation/wish/140400506 DISCUSSION QUESTION 2 sarankan https://padlet.com/sarankan/inflation/wish/140400755 Currently in my life I am in the process of buying my own car and saving money towards that goal. For that purpose it would be better if i bought the are when the inflation rates are lowered so that I can get a car that would usually be higher costing at a lower price. Other than that there is no other situation that will immediately affect my life with the inflation rates.]]> 2016-11-29 04:27:39 UTC https://padlet.com/sarankan/inflation/wish/140400755