Inflation Explained | What is causing inflation? | Why is inflation so high? | How to fix inflation?

Have you ever wondered why inflation happens? In this video we’ll look into everything you need to know about what might be causing the inflation we’re experiencing right now.

Inflation is the decline of purchasing power of a given currency over time. In other words, take the average price of a basket of selected goods and services in the economy and estimate the rate at which the purchasing power declines. You can also look at it as the rise in the general level of prices, often expressed as a percentage. Now many wonder why it’s happening and how to prevent it from accelerating at the rate it currently is. There are certainly many events that are causing inflation to rise, such as the war in Ukraine and new and recurring lockdowns in places like China due to Covid-19. However, there are many other things that could be contributing to the recent 40-year high in the United States and acceleration of inflation around the globe. As inflation will likely get worse before it gets better, we take a look at a few theories as to why this is happening and potential ways of how to fix it and slow the rate of inflation.

Reason #1 - Pandemic Caused Shortages.
Reason #2 - Climbing Oil Prices
Reason #3 - Government Stimulus
Reason #4 - Corporate Greed

Lastly, we look at how to fix inflation? The two ways discussed in the video are the Federal Reserve raising interest rates and Government Intervention.

Sources:
https://www.investopedia.com/terms/i/...
https://www.vox.com/the-goods/2299473...
https://www.eia.gov/tools/faqs/faq.ph...
https://mint.intuit.com/blog/planning....

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