In today's global economy, fears of inflation are front and center for many. This fear is driven by massive government stimulus in response to the COVID-19 pandemic. However, many market participants nowadays haven't experienced truly unhealthy levels of inflation and therefore aren't prepared to protect themselves against it. In order to understand where this fear originates from and how one can better protect themselves from unhealthy levels of inflation, it is paramount that market participants and everyday individuals understand the ins-and-outs of inflation. In this report we break down inflation, elaborate on its causes and effects, discuss how central banks manage it, explain what it means for society, and lend insight into how anyone can protect themselves against it.
