Why Are We In Inflation?

He believes that demand in a pandemic economy soared as a result of extremely active fiscal and monetary actions in response to Covid-19. The Obama administration’s stimulus program for the 2008 recession was $787 billion; the Trump and Biden administrations’ combined stimulus packages total roughly $5 trillion. Although that large sum of money has aided […]

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How To Trade During Recession?

Most investors should avoid investing in highly leveraged, cyclical, or speculative companies during a recession, as these companies have the highest likelihood of doing poorly during difficult economic circumstances. Investing in well-managed companies with little debt, high cash flow, and robust balance sheets is a superior recession strategy. In a downturn, counter-cyclical equities do well […]

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How Does Increase In Money Supply Cause Inflation?

Inflation can be divided into two types, according to Keynesian economists: demand-pull and cost-push. Desire-pull inflation occurs when customers demand things at a higher rate than production, maybe due to a bigger money supply. Cost-push inflation occurs when input prices for items rise faster than consumer tastes change, sometimes as a result of a higher […]

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