Inflationary: meaning, definitions and examples

Etymology

• The term 'inflation' comes from the Latin word 'inflare,' which means 'to blow up,' reflecting how prices can 'blow up' when they increase.
• The word started being used in English around the early 19th century during economic discussions in Britain and America.

Economics

• Governments might increase the money supply to stimulate an economy, but if too much money is printed, it can lead to inflation.
• Central banks often aim for a small inflation rate, around 2%, as a sign of a healthy economy.

History

• Hyperinflation occurred in Germany in the 1920s, where prices rose rapidly, leading to a loaf of bread costing billions of marks.
• In Zimbabwe in the 2000s, inflation soared so high that the country had to issue a 100 trillion dollar note, which became useless.

Pop Culture

• Inflation is often referenced in movies and shows depicting economic struggles, highlighting how characters deal with rising living costs.
• Video games sometimes include mechanics influenced by inflation, where in-game prices rise mimicking real-world economics.

Psychology

• Consumer confidence can be affected by inflation; when people expect prices to rise, they may buy more now, contributing to further price increases.
• Economic anxiety can impact societal behavior, as families change spending habits and make financial decisions based on inflation.

Ranked #11,285, this word falls into high-advanced vocabulary. It appears less frequently but is valuable for expressing precise meanings in specific contexts.

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