Inflation 1 The Economic Effects of Inflation on your Investments Inflation 2 Abstract Living in an intricate society that revolves around supply and demand has developed an increasing level of scarcity in our environment. The outcome of these much needed wants that cannot always be met has formulated a new and rising diverse factor to our economies equation: Inflation. Inflation erodes the purchasing power of our income and wealth. Meaning, that as you save and invest your accumulated wealth buys less and less and those who put off saving and investing will be even deeper in the money trap�s hole. Inflation 3 The Economic Effects of Inflation on your investments What is Inflation? �An increase in the amount of currency in circulation, resulting in a relatively sharp and sudden fall in its value and rise in prices: it may be caused by an increase in the volume of paper money issued or of gold mined, or a relative increase in expenditures as when the ......

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