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Inflation

Norbey Pidiache Pérez


Contents

 Definition
 Causes
 Consequences
 Policies
What is inflation?

 General increase in price level


 Loss of purchasing power of money

Source: Testeach
Causes

 Inflation by money
 Money printing
 Abundant things are cheap

Source: CNNMoney
Consequences
 Increase in the cost of living

Before After

Source: Dreamstime
Consequences
 Hyperinflation (Worst scenary)

Source: Medium Corporation Source: Fronteras Blog


How to face it?

 Exchange policy (B.R)


 Free trade
 Import cheaper goods

 Monetary policy
 Money supply
 Money printing
Source: Bow. James Bow

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