Inflationary Meaning: Definition, Examples, and Translations
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inflationary
[ษชnหfleษชสษnษri ]
Definition
economic context
Inflationary refers to the tendency of prices to rise over time, leading to a decrease in purchasing power. It is commonly used to describe conditions or policies that contribute to inflation, such as excessive money supply or demand-pull factors.
Synonyms
costly, inflating, price-increasing.
Examples of usage
- The inflationary pressures in the economy are increasing.
- Inflationary policies can lead to a devaluation of currency.
- The central bank is trying to control inflationary trends.
- He warned about the inflationary effects of the new tax policy.
Translations
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Interesting Facts
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.
Origin of 'inflationary'
Main points about word origin
- 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.
The term inflationary derives from the word 'inflate,' which comes from the Latin 'inflata,' the past participle of 'inflatare,' meaning to blow up or fill with air. The concept of inflation began gaining importance in economic discussions in the early 20th century, particularly during periods of war and economic instability when prices tended to rise rapidly. Over time, economists began to define and analyze inflation, leading to the establishment of various theories and models. By the mid-20th century, inflation became a central focus of monetary policy as governments sought to manage economic growth and maintain price stability.