INFLATIONARY TRENDS

Inflationary Trends

The accelerated pricing of goods and services brought on by financial disarray.

Post-Pandemic Inflation - Offsetting the Pause

With the arrival of the pandemic, health risks surfaced that drastically reduced trade and production. This "pause" led to drastic spending from the Federal Government and the Federal Reserve. Supply lines became backed up and production quotas were severely postponed, leading to a surge in the pricing of goods and services.

Expected inflationary trends

Inflation is expected to continue and no one knows for how long. From added stimulus of the Federal Reserve, and finding a new balance in a post-pandemic world, many economists expect sporadic inflationary trends moving forward.

Inflation within a recession

In periods of financial duress, inflation can have a devastatingeffect on the economy. Pricing for products and services can surge due to declining markets. How does the Federal Government and the financial sector approach this phenomenon?

WISE Investments

New Podcast Series: PostPandemicInvestments.com

An educational podcast series dedicated to financial awareness for both novice and seasoned investors. We discuss the ideology into creating this one-of-a-kind educational resource center, focusing on financial awareness within a post-pandemic reality.

Listen Inflationary Trends here

Frequently Asked Questions

Inflationary Trends

How does inflation play into investment performance?

Inflation is when the prices of goods and services increase due to some sort of financial constraint or when we experience an long periods of stagnation. In theory, when prices go up there is less spending, therefore it is difficult to earn a profit. Traditionally, high inflation has been synonomous with market downturns.

What type of tools are used to fight inflationary trends?

In times of accelerated inflation, the US Government can lower interest rates or increase monetary policy to offset constraints that cause inflation. There is a delicate balance when fighting inflation, otherwise the market could experience periods of heightened volatility or extreme price increases of goods and services.

What is hyper-inflation?

Hyper-inflation is the extreme version of inflation and can cripple an economy. For example, Brazil experienced hyperinflation from 1980 - 1994 and witnessed annual inflation rates exceed 100%. Hyper-inflation, historically, is quite rare. However, giving the right financial situation, it can quickly run out of control.

HISTORY OF INFATIONARY TRENDS

“Every dollar they saved was worth less with every financial crisis, while the government just printed more money to preserve the stock markets, the financial status of the elites, and the banks who served them.”

Kenneth Eade - Financial Writer

How does raising interest rates control inflation?

Featured Educational Articles

educational awareness - Article Summaries

Educational awareness to make the best financial decision for your needs.

Extended Content - Various Resources

Supporting educational content relevant to financial planning considerations.