Saturday School: Why Does a Good Economy Lead to Inflation?

Inflation sounds awful. But watch this video to find out why it can be a sign that things are headed in the right direction.

Saturday School: Why Does a Good Economy Lead to Inflation? Photo by GTbov / Shutterstock.com

When inflation ignites, we all pay more for our goods and services. That sure doesn’t sound like a good thing.

However, a moderate level of inflation actually indicates that the economy is doing well. Watch this Khan Academy video to learn how inflation begins to take hold, and why it’s often part of a “virtuous cycle.”

Do you worry about inflation? If so, how do you plan to protect yourself from it? Sound off by commenting below or on our Facebook page.

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