All language subtitles for 5_fodase01asdasd

on exports and imports. Anyways
guys, take care and I'll see

actually understand what it
means. Understand how inflation

means but just the main thing
is go back to this slide and

assets right? And then
eventually interest rates in

expensive for us? And then
obviously the impact that has

the purchasing power, does it
become cheaper or more

where it's inflation that we're
expecting to happen soon but

affects the currency. Does it
value it or devalue it? What to

searches if you still don't
understand exactly what it

it's already building up due to
that speculation. Anyways guys

understand that as producers
have higher costs they're

even happens. So that's what we
call the built in inflation

definitely take notes as we're
going through here and

can read more and more into
inflation but even YouTube

obviously look back just to
understand this more. I'm

going to be adding some more
links into websites that you

so expectations that prices
will continue to rise in the

know speculation goes on in the
market. For example right now

producer price index so it's
how much goods and services

the Fed are expecting that
we're going to be tapering

the future. And what a lot of
traders will try to do and

obviously going to push that on
us as well because they still

essentially the economy they'll
try to price that in before it

with a high standard of living
costs. So with speculation you

future. This has an impact on
cost wages and etcetera to deal

cost for consumers and how much
goods cost for producers so

want to make a profit right so
the third type of inflation is

increases it stimulates more
economic consumption and thus

built in inflation. This is
mainly due to speculation. Um

production cost increasing in
price so you've got to

does not involve any print any
printing of money but it

before we we're obviously
going to get into this in more

involves the increase of
consumer goods due to the

detail but CPI and PPI is
consumer price index and

demand is higher leading to
price increases then the second

demand. Supply and demand. Um
when the monetary policy

in advance fundamentals as well
So there's not just type one

but three these are the three
main types. The first one is

type cost push inflation higher
CPI and PPI so what briefly

demand push inflation.
Essentially it's printing and

so most people will flock to
their economy to buy their

for example or Japan that
really that really exports a

type of inflation. There's
actually three types. Uh four

detail when it comes to imports
and exports in some of the

might be a bit of a problem for
them but what they what they

expect them to have a currency
that that is very or a currency

want is they want their exports
to be as cheap as possible so

lot of products. In theory what
do you want? I mean would you

later videos in the core
fundamentals and then obviously

economy you are. Um so if
you're an economy such as China

up these these two factors and
just you know every economy

However our imports become
cheaper. So you've got to weigh

just see which works for them.
Now it depends on what type of

competitive because other
nations can can provide cheaper

becomes stronger. Now there's
obviously benefits and

goods for the you know for
international economies.

will have to will have to weigh
the these two factors up and

consequences of both these
actions when deflation is

expensive for foreign nations
and like we said we become less

said vice versa when purchasing
power decreases when inflation

is up purchasing power
increases because our currency

known as deflation the currency
increases in value. The

Um let's look at deflation now.
So when inflation is down also

true. Importers are harmed as
imports become more expensive

costs a lot more to get the
same imports as it did before.

purchasing power also
increases. So you know how we

occurring. Exports are harmed
since our goods are more

now. So as our currency and
purchasing power decreases it

since foreign currency cost
cost more of their own currency

so we can put cheaper prices
and or due to our cheaper

others. Therefore we become
very competitive in the market

prices we become competitive.
However the opposite is also

other nations coming to buy
products from us rather than

there's going to be a higher
higher levels of interest of

we send internationally it
becomes cheaper for us so

as their goods are cheaper for
foreign nations. So think about

it as their currency devalues
for other people to purchase

power decreases as we explain
with that $100, 000 example.

to keep steady inflation at 2
percent rate

countries financial regulators
attempt to avoid their goal is

of of inflation to see now
ultimately this is what

Now what happens when inflation
increases. So exporters benefit

that currency is cheaper for
them right? So any exports that

inflation going down which is
also called deflation. So in

when inflation is rising, the
currency devalues. Purchasing

people financially stable so
are the wages so it's GDP and

between one month to the next
more than 50% is a crazy amount

that is is very weak. Now to
make imports cheaper okay that

such a in such a short time is
detrimental to a country as we

essentially they're the leading
leading exporters in the world

which is considered 50%
inflation month a month so

So to really break it down
inflation and then going up and

markets, if you see whenever
you see countries with higher

what what are the causes of
inflation. So the main one is

explained here an extreme
example is hyper inflation

then it is a good effect
however too much inflation in

all inflation is bad. Don't get
that wrong. Just because the

goods and we're going to be
explaining this in much more

so more people are getting
employed and having jobs more

it. The inflation printed, the
weaker the purchasing power,

prices of things are going up
doesn't mean it has a directly

money supply. The amount of
money printed by a country is a

therefore a devalued currency.
That's why when you look on the

of the currency. So the pros
and cons of inflation. And not

significant factor in the cause
of inflation. So think about

negative impact. If inflation
is up but so is the employment

due to inflation and the as you
know the effect of inflation is

very significant and it can
cause many changes in monetary

dangerous for an economy as
we've seen in in Germany. So

stable to to have a thriving
economy and too high of a of

that means your 100, 000 has
less purchasing power because

video inflation could be you
know it needs to stay quite

issue. As you as we discussed
briefly in the economic train

policies of a country to try to
try and change deal with this

cost of products increases and
vice versa as well. So you see

10% so that means if you were
to buy something that costed

100, 000 this year but next
year it would cost 110, 000

how we just said it decreases
the purchasing power of a

you've got 100, 000 right now
and then inflation increases

currency. To frame that in your
mind let's just say for example

inflation, they've always got a
lower currency. Uh lower cost

inflation is considered to be a
2% so countries banks will

inflation can lead to hyper
inflation and that's very

around this level. If we see
inflation become too high, the

doesn't matter which economy
they're in inflation always

always keep an aim to keep will
always aim to keep inflation

purchasing power of a currency.
So the optimum level of

and services over time. It can
be described as a decrease in

rate the rate of inflation is
the change in prices of goods

exists So what is an what is
inflation? Inflation is the

Forex and inflation is
something that affects every

probably heard since you know
you're in the the industry of

from GDP that we just covered
right now we're going to be

single consumer around the
world whether you know it

moving on to inflation now this
is a term that many of you have

Yes hello everyone welcome to
the next video so moving on

you in the next video.