#Cliffcore

[aeztheticzfortmuzes]

[inkdrinkerofthevoid]

Tag Yourself: Aesthetics that describe me

Nymphcore: Fields of reeds, clouds rolling in, circles of rock, basking in the moonlight, flower crowns, sunbathing in creeks, gloriously alive, dirty and bare feet, hours among the leaves, nights spent watching the river, dancing in a circle, holding hands

Dark Ballet Academia: Leaving humanity behind, hands pressed against a mirror, hastily wiped tears, trying to fly and feeling like you’re falling, broken mind, a single drop of blood, pink ribbons fraying into decay, crumbling marble

Cliffcore: Begging to fly, pebbles thrown into the sea, rain falling against your face, not knowing if you are alive or dead, fingers tracing the petals of a wilting flower, rejoicing in storms, losing reality, staring at the horizon

Celestial Academia: worshiping the night, staring at the stars, kneeling in the moonlight, dreaming of a ladder to the sky, legs dangling into the air, poems left on the window, frost covered glass, pretending to hold the world in your hands, wishing on comets, seeing beauty in destruction

Adventurecore: Aimless wanderings, runnings through the hills, on the verge of greatness, call of the void, childhood books carefully stored away, constant hiraeth, empty avenues, walking between worlds, wanting to hold the planets, melancholy nights, thorns of roses, seeing things that aren’t really there, wishing for more

[odysseys-blood]

who's your favourite music artist :)?

oooo thats a toughie bc my music playlists are legit just any songs i like (which becomes a weird grab bag) but if i had to pick some then kendrick lamar, mitski, and everything everything!

[adonisaurearthshake]

Refection 12 The Costs of Inflation 1. The costs associated with inflation is the uncertainty, that lead to lower levels of investment, and lower economic growth. For individuals, inflation can lead to a fall in the value of their savings and redistribute income in society from savers to lenders and those with assets. At extreme levels, inflation can destabilize society and destroy confidence in the economic system. Few examples of the costs of inflation: Reduced international competitiveness: If a country has a relatively higher inflation rate than its trading partners, then its exports will become less competitive, leading to a fall in exports and a deterioration in the UK current account. This is particularly a problem for a country in a fixed exchange rate. For example, countries in the Euro, such as Greece, Ireland and Spain experienced higher inflation than northern Eurozone, leading to record current account deficits (over 10% of GDP in 2007. The un-competitiveness also caused a fall in economic growth. However, if a country is in a floating exchange rate-then the high inflation can be offset by a depreciation in the currency. Though this still has an economic cost as it is a decline in the terms of trade and more expensive imports. Confusion and uncertainty: When inflation is high, people are more uncertain about what to spend their money on. Also, when inflation is high, firms are usually less willing to invest- because they are uncertain about future prices, profits and costs. This uncertainty and confusion can lead to lower rates of economic growth over the long term. This is one of the main concerns about high inflation rates. Countries with low and stable inflation rates-tend to have improved economic performance over countries with higher inflation. Boom and bust economic cycles: High inflationary growth is unsustainable and is usually followed by a recession. By keeping inflation low, it enables a long period of sustainable economic growth.  Income redistribution: Inflation will typically make borrowers better off and lenders worse off. Inflation reduces the value of savings, especially if the savings are in the form of cash or bank account with a very low-interest rate. Inflation tends to hit older people more. Often retired people rely on the interest from savings. High inflation can reduce the real value of their saving and real incomes. The Costs of Deflation Deflation is defined as a fall in the general price level. It is a negative rate of inflation. The problem with deflation is that often it can contribute to lower economic growth. This is because deflation increases the real value of debt-and therefore reducing the spending power of firms and consumers. Also, falling prices can discourage spending as consumers delay their purchases. Deflation is not necessarily bad-especially if it is caused by increased productivity. But often periods of deflation have led to economic stagnation and high unemployment. Few examples of the costs of deflation: Discourages consumer spending: When there are falling prices, this often encourages people to delay purchases because they will be cheaper in the future. Deflation can discourage consumers from buying luxury goods / non-essential items, e.g., flatscreen TV-because you could save money by waiting for it to be cheaper. Therefore, periods of deflation often lead to lower consumer spending and lower economic growth; this, in turn, creates more deflationary pressure in the economy. Increase real value of debt: Deflation increases the real value of money and the real value of debt. Deflation makes it more difficult for debtors to pay off their debts. Therefore, consumers and firms must spend a bigger percentage of disposable income on meeting debt repayments. (in a period of deflation, firms will also be getting lower revenue, and consumers will likely get lower wages). Therefore, this leaves less money for spending and investment. This is particularly a problem in a  HYPERLINK “http://econ.economicshelp.org/2011/09/balance-sheet-recession.html” balance sheet recession where firms and consumers are trying to reduce their exposure to debt.  Increased real interest rates: Interest rates cannot fall below zero. If there is deflation of 2%, this means we have a real interest rate of + 2%. In other words, saving money gives a reasonable return. Therefore, deflation can contribute to an unwanted tightening of monetary policy. This is particularly a problem for Eurozone countries which don’t have recourse to any other monetary policies like quantitative easing. This is another factor that can lead to lower growth and higher unemployment. Real wage unemployment: Labor markets often exhibit sticky wages, workers resist nominal wage cuts (no one likes to see their wages cut, especially when you are used to annual pay increases. Therefore, in periods of deflation, real wages rise. This could cause  HYPERLINK “https://www.economicshelp.org/blog/1507/economics/wages-and-unemployment/” real-wage unemployment.  HYPERLINK “https://www.economicshelp.org/blog/1247/economics/european-unemployment-2/"Unemployment in Europe is a major problem-and low inflation is one reason. 2. Which is Most Important Would that be a problem and for Whom: HYPERLINK "https://www.economicshelp.org/wp-content/uploads/2014/05/Screen-Shot-2014-05-28-at-09.42.35.png” What I gather inflation can reduce the value of money and deflation is only good if prices fall, and your disposable income rises. It is true that some people, especially net savers, may feel better off during a period of deflation. But the problem is the wider macro-economic consequences of recession and unemployment. Five Reasons to worry about Deflation: Deflation is a generalized decline in prices and, sometimes, wages: Sure, if you’re lucky enough to get a raise, your paycheck goes further–but those whose wages decline or who are laid off or work fewer hours are not going to enjoy a falling price index. It can be hard (though, as we’ve seen, not impossible) for employers to cut nominal wages when conditions warrant; it’s easier to give raises that are less than the inflation rate, which is what economists call a real wage cut. And if wages are, as economists say, marked by “downward nominal rigidity,” then employers will hire fewer people. As economic textbooks teach, the prospect that things will cost less tomorrow than they do today encourages people to put off buying. If enough people do that, then businesses are less likely to hire and invest, and that makes everything worse. Deflation is terrible for debtors. Prices and wages fall, but the value of your debt does not. So, you’re forced to cut spending. This applies to consumers and to governments, and it is one of the biggest issues in Europe right now. As Yale University economist Irving Fisher  HYPERLINK “https://fraser.stlouisfed.org/docs/meltzer/fisdeb33.pdf” wrote decades ago, debtors are likely to cut spending more than creditors increase it, and this can turn into a really bad downward spiral. Cutting interest rates below zero is very hard. Yes, one way that central bank magic works is that the Federal Reserve and the European Central Bank cut inflation-adjusted interest rates below zero when times are bad, hoping to spur borrowing, spending and investment. But it’s almost impossible for them to cut rates below zero. (Sure, there are some examples of negative interest rates, but they’re not very negative.) In today’s economy inflation worries me more. Because if the cost of living does not equal to the current inflation, then I foresee more catching up on bills, depletion of hard-saved assets, and the possibility of workplace position displacement. Economics Help HYPERLINK “https://www.economicshelp.org/macroeconomics/inflation/costs-inflation/” Costs of Inflation - Economics Help (Tejvan Pettinger, August 8. 2019) Economics Help HYPERLINK “https://www.economicshelp.org/blog/978/economics/definition-of-deflation/” Problems of deflation - Economics Help (Tejvan Pettinger, December 9. 2019) HYPERLINK “https://cliffcore.com/why-is-inflation-bad/#:~:text=Inflation%20is%20mostly%20regarded%20as%20bad%20because%20it,because%20it%20dramatically%20reduces%20the%20value%20of%20money."Why Is Inflation Bad? - Cliffcore (January 12. 2020) HYPERLINK "https://www.brookings.edu/opinions/5-reasons-to-worry-about-deflation/” 5 Reasons to Worry About Deflation (brookings.edu)(David Wessel, October 16. 2014)

[aestheticoftheday]

Today’s Aesthetic of the day is: Business as Usual

[beetlefucker]

mrSimon - CLIFFCORE

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