Why Do Some Countries Have High Inflation While Others Stay Stable?

Inflation is when money loses its value over time, and prices go up. Some countries have high inflation because they print too much money, like giving everyone extra candy without making more candy. This makes the candy less special, and everything costs more.

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Examples

  1. A country prints extra money for everyone, so a candy bar that used to cost $1 now costs $2.
  2. Prices of bread, milk, and toys suddenly jump because there’s too much money in the economy.
  3. Everyone starts spending quickly before prices go even higher.

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Categories: Economics · inflation,money supply,central banks,economic stability