What is inflation? Inflation is the decline of buying power of any given currency over time.  Remember that candy that you used to get for .50 cents when you were a kid? Well, remember that same candy now, only smaller and costing $1.00. That is inflation!  The optimal inflation rate is considered to be around 2%, but a lot of countries try to target +/-1 of that 2%.  The main point is that… Read More