Economic Instability in Ceyda Oner’s “Inflation: Prices on the Rise”

Inflation
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Inflation
Ceyda Oner’s “Inflation: Prices on the Rise” shows that inflation causes economic instability. Central bankers are called “inflation hawks” since they regulate the money supply in the economy (Oner, 2021). In particular, inflation refers to the rate at which prices of goods and services or the cost of living rises in a country within a specific period. The government measures inflation by considering the cost of purchasing a basket of household products, consisting of the commonly bought items, within a year. Since inflation leads to the rise of prices of products and services, it reduces individuals’ purchasing power.
According to Alicia Adamczyk, inflation means that consumers must spend more money than before to buy similar products and services. Although small inflation indicates that an economy is healthy, a large percentage can have adverse economic consequences. In that light, an individual should remember that the rising cost of goods and services does not mean that wages are increasing. For instance, as the economy recovers from the COVID-19 pan...