Please don’t say there’s no need to control inflation. That will wipe out any savings anyone has. Your money will be worth We’ve seen its ill effects time and again.
Argentina has 211% inflation right now. It is a vibrant economy, crippled by inflation. People cannot save. Either spend all you have (it will be worth 1/4th in a year) or buy forex.
(I apologize if the following sounds a bit ranty):
We need to keep in our minds that a lot of economics is human psychology. Inflation is a mass psychology phenomenon. The stock markets work on psychology. Which is why we have these insane “valuations”. Why would anyone think NVIDIA is worth $1.5 Trillion dollars is beyond me. I’ll explain - 1) Traders gotta trade. 2) Investors have got to invest. When despite such high interest rates, people invest in the markets - that’s got to be greed - likely caused by a high inflation recency bias. Still operating as if their money will be worth much less next year.
Also it’s noteworthy that just before 2020, the valuations were 1/4 of what we have now. Has the productivity of the world suddenly increased manifold? No. It was fuelled by two things 1) Near 0 interest rates that forced safe investors to pull their money out of bonds and savings accounts 2) Collapse of office real estate. The second one is on-going, so my guess is a lot of the money in the markets is coming from ex-office real estate investors.