Inflation
Inflation, a rise in the average level of all prices, is a problem that can affect both developed and undeveloped countries. It occurs when the economy is producing at or near full capacity. As inflation increases, the purchasing power of the dollar decreases. As prices rise, wages and salaries also have a tendency to rise. More money in people’s pockets causes prices to increase even higher. This can make it hard for consumers to catch up. Inflation can occur at any time and like any other problem, there are both gainers and losers. Continued inflation can affect people in different ways. Those who live on fixed incomes suffer the most because the are not able to buy as much. Those who lend money when prices are lower may be paid back in dollars of reduced purchasing power. Banks and savings and loan associations also tend to lose from inflation. Should inflation continue for a long period of ti
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Some common words found in the essay are:
Bank Canada, , Paul Jenkins, canadian economy, bank canada, Paul Martin, purchasing power, functioning canadian economy, rates increase, inflation levels, increasing rates, low inflation, functioning canadian,
Approximate Word count = 608
Approximate Pages = 2 (250 words per page double spaced)
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