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There is only so much that watching and reading the news can tell you about the subject of money and banking. Much of this news is aimed at an audience that knows very little about what goes on behind the scenes of our economy, and the news on business channels such as CNBC and Bloomberg is very technical and can go over my head at times. Part of the reason I embarked on this degree program was to understand the technical side of finance and economics. It is now my job to present my knowledge to those who know very little about this subject. With that, I present the three most important things I learned.
The first important thing I learned is about inflation. Inflation is a term heard a lot in the news, and in its most basic form it represents an overall rise in prices. Inflation reduces the purchasing power of earnings in that if you make the same amount of money each year, inflation pushes the prices of what you need upward, and your money buys less of what you need each year.
A little inflation each year is not a bad thing. Hopefully—but not always—wages go up to match in…
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