With increased access to money due to monetary inflation, companies and consumers may raise demand and drive up inflation across the board. As such a gloomy future loom over us, let's take a look at the 3 different types of inflation.
The headlines are dominated by inflation as prices reach 40-year highs.
While the cost of necessities like food and energy is the sort of inflation that receives the most attention, other types of inflation can be found throughout the entire economic system.
Dorothy Neufeld of Visual Capitalist shows three forms of inflation and the macroeconomic forces that affect each type in this Markets in a Minute from New York Life Investments.
1. Monetary Inflation
When the amount of money in the United States rises over time, monetary inflation results. This symbolizes the economic flow of both physical and digital currency, such as cash, bank accounts, and money market mutual funds.
The U.S. central bank frequently modifies bank reserve req...