Understand the effects of inflation on investment in just 50 minutes with this practical and concise book. Inflation is an economic phenomenon with wide-ranging consequences. It plays a vital role in determining the real value of money over time, and therefore affects the real value of any investment dividends. This means that estimating the potential effects of inflation is a crucial step in planning any investment.
This book will provide you with a handy introduction to the theoretical underpinnings of how inflation works, as well as an explanation of related phenomena such as deflation and disinflation. It also features a detailed examination of the methods used to calculate the rate of inflation and the resulting effect on the real value of investment dividends, as well as an introduction to adapting your investment strategies according to the rate of inflation.
Inflation is an economic phenomenon which can be defined as a sustainable rise in overall price levels. Inflation can be caused by a variety of factors, including the money supply, demand, costs, financial predictions and changing consumer habits. The real value of currency decreases during periods of inflation, meaning that it is an important consideration for anyone who is planning to make an investment.
In this book, you will discover how inflation works, what causes it, and how it affects the real value of investment dividends, as well as learning how the rate of inflation is calculated by statistical institutes. A clear explanation of how you can estimate the potential effects of inflation on your own investments, several detailed case studies, and an introduction to related phenomena will give you the tools you need to tailor your investments to the current economic situation.
This straightforward and accessible 66-page book is structured as follows:
- Inflation-conscious investments
- The inevitability of inflation
- Practical application
- How to react to these situations
- How to spot price fluctuations
- Case studies
- Limitations and criticisms
- Extensions and related concepts
50MINUTES.COM – Business