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What exactly is inflation? (Written by Taruru)


Hello everyone, this is Taruru, a member of the accounting team. Today's topic is "inflation". Have you ever heard of the word "inflation"? It refers to a continuous rise in prices. For example, something that was 100 yen a year ago is now 120 yen. So, why does "inflation" occur? There are various reasons, but the main cause is that there is too much money in circulation. When countries or central banks increase the amount of money, the value of money decreases, and prices rise. So, what kind of impact does "inflation" have on our daily lives? For example, when prices rise, the amount of money needed to buy the same product increases, meaning we can buy fewer things with the same amount of money. Also, if salaries increase but prices are also increasing, our income can actually decrease in real terms. Next, what would happen to Japan's economy if "inflation" were to continue? Actually, if "inflation" continues, it would have a negative impact on Japan's economy. For example, domestic companies may lose their competitiveness and be pushed aside by foreign companies. Also, with the rise in prices, domestic consumers may have to cut back on spending, leading to economic stagnation. Finally, let's think about what we should do to prepare for a situation where "inflation" continues from now on. What kind of measures can investors take during inflation? Here are three possible strategies: Stock investment Stocks tend to be relatively resistant to inflation since they fluctuate depending on a company's performance and economic conditions. Also, if a company grows and profits increase, stock prices rise, so investors can still earn relative returns even if the currency value is declining due to inflation. Real estate investment Real estate investment may increase in value during inflation. Also, since real estate generates stable returns over the long term, it can be considered as an option for retirement funds. Commodity investment Commodities are said to be less affected by inflation. By investing in resources such as crude oil or gold, investors can earn returns even if the currency value is declining due to inflation. While these investment options may seem attractive, investing always comes with risks. Therefore, it is important to invest according to one's own risk tolerance. Also, it is strongly recommended to take responsibility for your own investments. Thank you for watching until the end. If you liked this content, please like and subscribe to our channel. We will provide daily information to help you learn more. Thank you for watching until the end. If you enjoyed the content of this video, please hit the like button and subscribe to the channel. We will be delivering informative content that will help you learn every day, so please continue to support us in the future....(read more)



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Inflation is a term commonly used in economics to describe the constant increase in the prices of goods and services over time. It is often seen as one of the principal indicators of a country's economic state and is a critical factor that governments and central banks must consider when formulating monetary policies. The causes of inflation are complex and multifaceted. Many different factors can contribute to price increases, including a growing demand for goods, rising production costs, changes in currency exchange rates, and shifts in consumer behavior. The type of inflation can vary depending on the underlying cause, and the severity of inflation can range from mild to hyperinflation. Inflation can have both positive and negative impacts on an economy and its citizens. A low and manageable inflation rate can keep an economy stable and prevent prices from skyrocketing, while high inflation can lead to instability, reduced purchasing power, and economic decline. It can also disproportionately affect groups such as those on fixed incomes or those with little access to financial instruments to hedge against inflation. Governments and central banks use various tools to manage inflation, including setting interest rates, controlling the money supply, and implementing fiscal policies such as taxation and government spending. These policies aim to strike a balance between promoting economic growth and stability while also managing inflation levels. In conclusion, inflation is a critical economic indicator that affects the daily lives of citizens, businesses, and governments around the world. While it can be difficult to manage and control, proper economic policies and interventions can help prevent the negative effects of high inflation and support sustainable growth and stability. https://inflationprotection.org/what-exactly-is-inflation-written-by-taruru/?feed_id=96111&_unique_id=645b434edb038 #Inflation #Retirement #GoldIRA #Wealth #Investing #Japan #InvestDuringInflation #Japan

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