Posts by tag: inflation

Did you know that inflation boosts the GDP?

I recently came across a fascinating fact about the economy - did you know that inflation can actually boost a country's GDP? It might seem counterintuitive, but as inflation increases, so does the nominal GDP due to the rising prices of goods and services. This creates an illusion of economic growth, even if the actual output hasn't changed significantly. However, it's important to remember that this isn't always a positive thing, as high inflation can erode the purchasing power of consumers and cause other economic issues. It's essential to keep a balance between modest inflation and sustainable economic growth for a healthy economy.