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With all the government stimulus packages in 2020 to help offset the impacts of the coronavirus pandemic, many economists are discussing what it all means for the U.S. economy in the short- and long-term. They use words like inflation, deflation, and hyper-inflation. We’ll explain what these terms mean.
With the multi-trillion-dollar stimulus packages pumping money into the economy, this new infusion of cash could lead to an increase in demand. The excess money means more people are going to spend. Inflation can be slowed or avoided if the excess money is saved and not spent.
Inflation isn’t entirely bad unless it happens quickly creating hyper-inflation.
While the U.S. economy remains healthy, understanding these basic economic principles you’ll now better understand what economists are saying
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