why is inflation considered to be a bad thing?
341232
because most work places do not consider Inflation as part of a common pay raise.  If inflation rises up 5% and your pay raise is 1 - 3%.\n\nYour uphill battle begins.\n\nInflation is NOT always considered a bad thing but a process that assists finaicial markets.
823137
It's a way to gauge interest rates, but a poor way to gauge personnel inflation.  If you love cheese and movies and have serious health care problems, your personnel inflation rate will probably be several times higher than the CPI.  I was watching one show where this guy's personnel inflation rate jumped 1,500% from the previous year just because of what he bought.
835514
Interest rate increases in general are made to curve spending of the people.  The increase in rates makes it more expensive to get a loan.  What happens is people stop getting big loans to pay for large items like a house.  Less money out in the open causes less inflation (less suply the greater the value).  That's my two cents though its only a penny for my thoughts so the bigger question is where does the extra penny go?
987212
Because of the discrepancy between wages and inflation, the SS I've been paying all of my adult life has been used to pay my mother's pension. I don't begrudge my mother for this. I blame the makers of the inflation. That being said, I just figure it won't be there if and when I retire and that if I plan on having a pension I had better do it myself because the government is not capable of handling any type of responsibility for my well being.
130022
In the usa currencies are no longer backed by gold, it ended in the 1930's or 1960's i think.  It is now backed by the good faith of the usa government. Printing too much money would cause inflation for what one pays for good or services.\nThink of money like barry bonds rookie card.  If someone started dropping them from planes and passing them out at walmarts until everyone has one the value of the card would deflate because of supply and demand, now, imagine i want you to plow my driveway, are you gonna do it for a barry bonds rookie card knowing that everyone in the country has one. The world bank sets the amount, along with federal reserve and treasury department.
819171
Hey! Not only the FED (The Central Bank of the United States) uses its primary rate (a reference rate to the market), but currently, most of the countries in the world utilizes the same system. It's called "inflation target" and its done through the teories of monetary policy. \nThe way it works its pretty simple: the Congress (usually) establishes the inflation target (let's say 3% per year) and the FED focus on it in order to meet the number.\nHow does it impact in your life and in inflation? When the interest rate (primary rate) goes up, the "cost of money" increases, reducing the availability of currency in the nation. Less money, less expenses; less expenses, less demand, less demand leads to low inflation, due to the fact that companies will have to compete in a market with less impulse to consume.\nAt last, but not least: combating inflation is a very important government role. As a guy from Brazil - and my country used to have a 50%+ inflation rate PER MONTH - I can tell you that what inflation does it is pretty nasty: captures the income of the poor and the lower middle class.\nIn Economics inflation is also called  "the taxation of the poor", because it takes the money of low income families before they even can spend it.\nHope it has helped you somehow!
888170
It depends on whether u r asking about economics, culture, or government.\n  In economics, it's bad for industrialized countries and good for developing countries. The main reason being, developing countries can typically produce a product for less money which is good for the consumers.
993977
It is not money that is bad it is the LOVE of money.  When someone gets all wrapped up in their money sometimes they don't care about others as long as they get money.  Sometimes however, people who have ample money realize that they can do some good in this world so they decide to use their money to benefit others.  If you have a love for money so strong that it breaks relationships and does not harm than good, then there is a problem.
17052
These two links are quite comprehensive in their coverage of these terms. \n\nhttp://en.wikipedia.org/wiki/Inflation\nhttp://en.wikipedia.org/wiki/Deflation_%28economics%29
964801
Because if the government printed loads of money, inflation would go up and the economy would be ruined. \n\nIf only it was that easy...
74344
They are deflationary to combat inflation
294557
Generally, low developing countries are poor ... not just the people, but the government itself. And for the government to meet its obligations, it often simply makes more money -- but this additional currency leads to the devaluation of the existing currency and leads to inflation.
785998
False.  Inflation decreases your purchasing power.  And it also decreases the value of your debt.
408895
Sounds very complicated.  Probably an assumption that your costs and incomes will need to adjust for inflation and you need to determine what new prices you have to demand in order to maintain a profit.  The assumption, of course, would be how much inflation you could expect.  Feh.  Good luck on that.  Anyhow, sounds like a college homework problem...  Good luck on exams!
706989
Current inflation rates are a bit higher than the central banks would like to see, but not so high that they are affecting most peoples' habits.\n\nThe real estate market is actually experiencing a period of recession; many property values are dropping somewhat.  This tends to be somewhat localized though so it may or may not apply to your area.
1132366
It depends where you are in the world. In the UK I believe it is between 3 - 4 %. Not sure what inflation is like else where.
152394
the main cause of inflation is the government increasing the supply of money. But it is a little more complicated than that.  When the price of oil increases, the costs of everything that depend on oil also increase, for example. That then causes an increase in prices charged to workers. Workers then demand increased wages to maintain their standard of living. Employers give them higher wages without too much fuss because they know that they can pass the increased costs on to consumers.  The government facilitates all of this by printing more money. The government loves inflation because they borrow a lot of money at fixed interest rates. If they can cause the value of the dollar, peso, pound, euro, or whatever to decline they do not have to pay back all of what they borrowed. A neat trick and used successfully by all governments. Inflation also increases tax revenue.  If a person buys a share of stock for $100 and ten years later sells it for $200, he has to pay taxes on $100.  But if the inflaction rate is 4%, he actually made only $52. So the government makes out like a bandit again. The same goes for all borrowers.  \n\nOn the other hand those who lend money are loosers. Consequently, inflation tends to dry up the sources of capital. It is better to spend your money than to save it. Hence, that is why people have not been saving money since 1999, because Greenspan reduced the interest rate to 0. People are not as stupid as the government is.