Isn't it scary to think about something we've previously put so much value in can suddenly become worthless? Well, to me it is. And that thought is put into nightmarish reality with inflation. It urges people to spend hastily and almost mindlessly just to get the biggest bang for their buck while they still can. Yet when inflation deflates back to a somewhat normal state, people may see that the things they spent in their inflation-induced shopping spree can be as worthless as the cash they used to buy them with. Inflation can bring the whole nation to its knees within hours, and then leave it in disarray after it's done vomiting everywhere.
So how can we decrease this problem that can leave the whole nation in a shambles? One way is the Federal Reserve. In order to fight inflation, the federal reserve can heighten reserve rates, discount rates and also sell bonds. It's these actions that keep the nation from really slipping under when inflation hits. Thanks to the Federal Reserve, America has not experienced hyperinflation. And also thanks to the Federal Reserve, we can all start putting faith back in the worth of things again.
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