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Topic: What is The Negative Effect of Inflation on Household Savings? - page 6. (Read 993 times)

sr. member
Activity: 868
Merit: 456
There are two types of consequences: if you have money on your bank account they lose their purchasing power because you are subjected to an "implicit tax" because your saving are cut by the increasing in the price level. So you should be able to invest your money in bond or in  the Capital market in order to close the gap with the inflation rate.

It looks like you just mentioned one type of consequence, did you forget to write the second one?

I have never entered or bought the bond market, I have only tried the stock market but for me it is too complicated. We have a more profitable solution here so we are not as interested in the bond market. Of course Bitcoin, and bitcoin has higher returns than bonds with the same risk. You can see the price history of bitcoin over time, which is great
newbie
Activity: 10
Merit: 0
There are two types of consequences: if you have money on your bank account they lose their purchasing power because you are subjected to an "implicit tax" because your saving are cut by the increasing in the price level. So you should be able to invest your money in bond or in  the Capital market in order to close the gap with the inflation rate.

Obviously investing you can achieve more profits but losses at the same time, due the equation more yield and more risks.

If you want an advice you can just think to invest your money in bond because Central Banks will decrease interest rates in the long run because inflation is falling sharply.
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