Monday, February 4, 2013

Fundamental Analyzes? Inflation In Connection to Interest Rate and wage


In the last post I wrote about the article “The 8 Economic Factors that Affect the ForexMarket”  by Justin Stewart. One of the factors he mentioned in his article was inflation. But what is inflation and how does it affect the economy?

I found some videos on YouTube explaining what inflation is and how inflation affects the interest rate; the videos could be helpful in understanding fundamental analyzes.

The first video explains how inflation works in connection to wage and price changes


The second video explains how inflation works in connection with the interest rate. The interest rate is as mentioned in my last post one of the tropic the focus often is on as it is influenced by the monetary policy in the currencies countries.


The third video explains why inflation cannot be 0%