We have taken a look at the effect of inflation on your money’s purchasing power and the importance of having some your assets in stocks, bonds, or an investment vehicle that is indexed to inflation. Clearly, it is not possible to have all cash reserves indexed or protected against inflation. Inflation has many ways ofContinue reading “Is Inflation an Implicit Tax?”
Tag Archives: inflation
How Inflation Affects Debt
We have talked about the effects of inflation on the value of the dollar before. Now how does this translate to our everyday lives? One key thing to understand about inflation is how it affects debts that you may owe or that someone owes to you. Understanding the basics will not only help you understandContinue reading “How Inflation Affects Debt”
Inflation, Interest Rates, and Dividends
Most people believe it is impossibly hard to understand how interest rates and dividends affect the value of the share price of a stock, but if you can understand opportunity cost then you can understand these concepts. Understanding these concepts will not only make you a better investor, but they will also allow you toContinue reading “Inflation, Interest Rates, and Dividends”
Inflation
Inflation is one of the most important concepts that a person can learn about when it comes to economics. In a very simplified explanation, the inflation rate is the rate at which all prices in general are rising in a market over a period of time. Thus, when prices increase each dollar can buy less. Continue reading “Inflation”