My Take on Econ

 In this blog I will discuss: ·         Origins of banks and how they became rich (Part 1) ·        The economics of banking and why is it still being used (Part 2) Part 1: Banks have been in existence for centuries to do a few basic purposes: 1.          To hold people’s money, so they can withdraw and use it whenever they want 2.        To Give out loans, to people who want to start a business or purchase expensive things like houses or cars 3.        To make a currency like modern day central banks do, so that the society doesn’t have to barter to get their desired products. However, it was not always like this. The system’s foundations began with humble beginnings, in the shops of individual goldsmiths. This is due to gold being a universally accepted currency as it is value dense as small coins could pay for large sums, the coins didn’t corrode, they were easy to mint (turn to currency), and they were in a limited supply. Therefore, gold became the standard currenc

In this blog I will be discussing the following points ·        What is inflation and how does it happen? ·        Why is it such a problem? ·        How might it affect you? In layman’s terms, inflation is the value of money decreasing and the cost of everything increasing. This means that common products like chocolates at your local grocery shop to house prices all increase relative to your local currency. This happens because the currency’s purchasing power decreases due to an increased level of money printing in an economy causing an excess supply of the currency. Assuming demand remains at a lower level as to the supply, this would cause the price to increase due to the supply and demand graph. However, this can also happen by a decrease of demand of the currency from other countries simultaneously, but this is rare and not as significant as the first scenario.  Low levels of inflation are upheld by governments and central banks around the world to increase the velocity o