Bubbles happen when a specific asset type or closely-linked group of assets suddenly become very popular and significantly grow in value as more and more people are drawn in. At some point the assets reach their peak value and the bubble will either burst with a big BANG or just slowly decline. The asset types …
Over 10 years ago, a new word emerged from the backwaters of the dictionary to become a regular feature in popular conversation. In fact, to call it a word is incorrect, it was a term and the term was ‘The Deficit’. I’ll stop capitalising and wrapping it in quotation marks now, but for many years …
Imagine the economy is a car tyre… Too much deflation in the economy and the tyre goes flat. This stops the car from driving properly and could even cause a crash. Nobody wants an economic crash! Too much inflation and the economy grows so quickly that it bursts – with a great big BANG! Again …
Why governments are obsessed with managing inflation Read More »
Deflation is the economic opposite of inflation. So what exactly is deflation and how does it impact us? What is deflation? Deflation is when the prices of goods and services fall and the value of the currency goes up. This means as consumers we get more for our money. In anyone’s book, getting more for …
Deflation: What is it, what causes it and how does it impact us? Read More »
It seems like everyone is talking about inflation these days, but what actually is inflation and how does it impact us? What is inflation? Inflation is when the price of goods and services go up, while the value of our money goes down. This means we are getting less for our money, which explains why …
Inflation: What is it, what causes it and how does it impact us? Read More »
