When inflation thrives

Whenever the price of goods and services increases, it is normal that there must be an involvement of central banks to increase the interest rate and thereby balancing the economic growth as with inflation. It is global and most practiced. But when something other than usual happens and central authorities standing on the same decision is what induces a threat. In the surge of covid, while people tried and landed upon investing in public and private equities, it generated a great cash flow in the free float market. After a quick dip, the stock market recovered and made it to the track. That is good sign. Amid this the global governments were forced to decrease the repo rate, fearing the growth of economy. The decision that happened is yet to reveal the results.

But the results might not be controlled, because once the participants tremble to stay upon momentum and get suspicious, market falls down brining download most of the goods with it. The employed people might get unemployed again. This case can be controlled with proper action by the authorities. In either way, common man becomes the victim of this action. Lack of knowledge leads them to the dip. Better educate yourself.

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