Inflation can be categorized into two distinct types: demand-pull inflation, which occurs when increased spending and money supply drive prices up during prosperous economic periods, and cost-push inflation, which results from rising production costs (such as energy prices) that reduce purchasing power and create economic hardship. Cost-push inflation can trigger wage spirals, stagflation, and shrinkflation, potentially leading to hyperinflation if left unchecked.
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There are two very different types of inflation #ShortsAdded:
There's two different types of inflations. We can kind of broadly look at it. So, there's you know the inflation that everyone's rich and we're spending lots of money because we have so much money and prices going up, but it's okay. We've got money. It's you know good times ahead. And then there's things like energy inflation, which is bad inflation. So, people aren't having a good time with energy inflation.
There's wage spirals. There's stagflation things happening. There's shrinkflation. There's you know all these bad flations are happening.
Obviously with oil going up because everyone's worried about Strait of Hormuz, we're seeing prices go up, which is causing this yield. The government still needs to sell bonds, right? Yeah, so they they're going to pump out more bonds, which is going to cause more inflate you know it's going to become this spiral and this is how you get you know down the track you get hyperinflation.
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