Commerce Inflation

Justice exists in the world, whether people choose to practice it or not. The men of talent are being vengados. The avenging is reality. His weapon is a slow, silent, invisible, and men only perceive its consequences, the ruins and the moans of agony that leaves in its path. The name of the weapon is: inflation. (1) _ A recurring theme in the national media agenda is inflation.

This issue is usually done in different ways, but rarely mentions what this phenomenon, which are their causes, because it happens and how it can be avoided. I what is inflation? Inflation is an economic phenomenon consisting of a persistent rise in the general level of prices or what is the same thing from another perspective: a decrease in the purchasing power of money. Additional information is available at BSA. (2) The prices of goods and services consist of the nominal amount of a particular currency that the market demands to provide them. Likewise, a decrease in the purchasing power of money occurs when they can acquire fewer goods or services with the same nominal amount of currency. Therefore, to understand what inflation must be taken into account what money? Money is the universally acceptable means of Exchange (3). Due to the complications that would be handled through barter, money is used in any developed economy.

The same as well as instrument of change is the basis of saving that allows delaying the consumption and buying time for future production. What is important to emphasize the money, as regards inflation, is that it is an instrument of change. What is it changed? Goods and services for other goods and services, using the currency as a lubricant of Commerce. Let’s see how it works on an example from everyday life. A manufacturer of shoes of people actually do not need money to live, but they need food, medical services, housing and supplies to continue producing and so be able to meet their needs.