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A Letter to Inflation

Updated on February 22, 2017

Dear Inflation,

First of all, I would like to commend on your popularity. YOU have hit each household and every living being. YOU are the talk of each gathering, and all of us are conscious of YOU since YOU hurt our buying power. As the prices are rising, we have to pay more for the same goods and services. The standard of living for some has decreased because of YOU. However, some of us are lucky that as Inflation rises they see an increase in their income.

YOU certainly play tricks on our minds. These days we see an increase in Gas prices, but our home values are decreasing. Oil prices drive the gas prices and have made the cost of gas heads for $5 a gallon. Driving to work has become more expensive and stressful than about keeping our jobs.

Economists tend to define YOU as a cause for an increase in the money supply. However, in the short and medium term, YOU are largely dependent on supply and demand pressures in the economy. Thus, the increase in Gas price and the downturn in our home prices.

YOU are also referred to as a rise in a broad price index where YOU represent the overall price level for goods and services in the economy. Some examples of broad price indices are Consumer Price Index (CPI), Personal Consumption Expenditures Price Index (PCEPI) and GDP deflator.

This is an inflation calculator indicating a price of a commodity years ago and how much would that commodity cost now.

Different schools study YOU and try to reason out how YOU can be controlled. Some have come up with a theory of a couple of few policies.

•Monetary Policy
US Federal Reserve has several strategies up their sleeve and amongst the many is to keep high-interest rates and slow growth of the money supply, which is the traditional way the central banks fight or prevent YOU.

•Fixed exchange rates
To control YOU, a country’s currency is tied to value to another single currency. Fixed exchange rate is usually used to stabilize the value of currency. This fixed exchange rate prevents the government from using domestic monetary policy, and that helps in achieving macroeconomic stability.

•Cost of living and wages
Controlling of wages is involved with different occupations in today’s life. That has impacted the value of the life of each individual. However, if the cost of living and the wages are relative, then no person could lose his livelihood but since; this is not controlled. YOU affect many.

•Price of Gold and Silver
Prices of Gold and Silver go up versus all currencies when YOU are hit. Statistics show that when the price of the dollar goes down, gold and silver move higher and vice versa. Thus, Gold and Silver are a sound investment to protect one’s wealth.

A Request

Dear Inflation, you wallop man in all aspects of life. I humbly request you to spare the human in some arenas of life namely- Food, and Death.

Let no man die of hunger. This is a natural product, which is grown on Mother Earth. They, why charge the poor man the transportation fee. Spare the fees on food PLEASE.

When a soul leaves the body. This body needs to be buried, and the cost of land per square feet is expensive for some that the relatives don’t know what to do with the body. Could YOU please be liberal on the cost of land where the body needs to be rested? Can you please not affect the cemetery and burial fees and let them be at its minimum.

Since YOU are so powerful that YOU can move the Treasury Department. I request you to ask the government to subsidize the food and cemetery and funeral laws. Let our bodies get the required nutrition to fight the challenges of life and then when it is time to say Adios, let us rest in peace!

Thanking you in anticipation,

A Common Man


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