Comments on: Inflation Quiz – How much do you know about this topic?

By: Joel

Joel — Fri, 24 Sep 2021 00:07:35 +0000

In reply to Charlene Acosta. Cheers! Yes, I learned a lot in the process while researching this stuff!

By: Charlene Acosta

Charlene Acosta — Tue, 21 Sep 2021 19:05:52 +0000

Thank you!, this was fun AND I learned that I didn’t know much about inflation at all 5 right out of 11, so this was very helpful. Great work!

By: J

Mon, 28 Jun 2021 16:28:37 +0000

In reply to Joel. Hahaha!

By: Joel

Joel — Fri, 25 Jun 2021 18:20:07 +0000

In reply to J. Well I was going to include a 12th question in the quiz about "hyperinflation on the German economy pre-WW2 and it’s role in the rise of authoritarian politics", but removed it right before publishing... It sounds like would have got that one correct, too!? ;)

By: J

Fri, 25 Jun 2021 17:21:30 +0000

100%! Yes! All that studying for the BEC portion of the CPA exam paid off! lol That was fun. Inflation can get a bad rap, but you do want a modicum amount of inflation. Sustained deflation can be worse than inflation, and hyperinflation is an economy killer (ex: see the effects of hyperinflation on the German economy pre-WW2 and it’s role in the rise of authoritarian politics culminating in Hitler’s rise to power). The role of the Federal Reserve is to manage the money supply to keep inflation on a stable trajectory over the longer-term. If the constraints in supply along with high demand for that limited supply remain for longer than just a few quarters, you could expect the Fed to have to begin raising the central bank rate. Some price increases related to supply constraints are temporary. The question will be when they raise rates, how long they will do it for, and at what pace they raise rates. These adjustments can be necessary for a healthy, long-term economy, but they can also inadvertently trigger recessions. I would expect advance notice of a rate increase and a steady rise to avoid spooking everyone too badly.

By: Joel

Joel — Fri, 25 Jun 2021 17:16:34 +0000

In reply to Chris. I'll have to make 'em a little harder next time for the smarties like you, Chris!

By: Chris

Chris — Fri, 25 Jun 2021 16:08:31 +0000

Managed 11/11 but there were a few lucky guesses like the average inflation rate over the last
100 years.

By: Joel

Joel — Fri, 25 Jun 2021 14:13:32 +0000

In reply to Lisa O. Awesome! I actually learned a ton researching some of this stuff. There's a bunch of FUD news out there right now so it was good to dig deeper into what we should be worried about vs. what we shouldn't with inflation.

By: Joel

Joel — Fri, 25 Jun 2021 14:08:52 +0000

In reply to The Millennial Money Woman. Happy Friday Fiona! Yes the hot air balloon ride was a very lifting experience :). Highly recommend.

By: Lisa O

Lisa O — Fri, 25 Jun 2021 13:22:03 +0000

That was fun…I learned something but also passed!

Have A Great Friday ~