ECONOMICA

Back in the days the main medium of exchange was the barter system; exchanging one good for another. But that was not full proof, what if one of the goods is more valuable than another? Will it be rational to exchange an entire goat for a bowl of rice? The answer is no. So then what is the a rational mean of exchange without depreciating the value of a good? Money. In 600BCE, Lydia's King Alyattes minted what is believed to be the first official currency, the Lydian stater. A medium of exchange that is centralized, generally accepted, recognized, and facilitates transactions of goods and services, is known as money. Money is a store of value, unit of account and medium of exchange. Money differs from country to country and government to government. It plays a crucial role in an economy. Most of the functions of an economy are carried out through transaction of money, whether it is to supply goods and services to various sectors such as the defense, etc. or to make welfare payments

The Impact of Inflation on Finances Inflation is a term that we often hear in the context of economics, but what exactly does it mean, and  how does it affect our personal finances?  In this blog post, we'll dive into the world of inflation and  explore its significant impact on your money. Understanding Inflation Inflation refers to the general increase in the prices of goods and services over time, resulting in a  decrease in the purchasing power of your money. In simpler terms, as inflation rises, each dollar you  own buys a smaller quantity of goods and services. It's like a silent, slow erosion of your wealth. Inflation is typically expressed as an annual percentage increase, and central banks, like the Federal  Reserve in the United States, often target a specific inflation rate to maintain economic stability. A  moderate level of inflation is generally considered healthy for an economy because it encourages  spending and investment. However, when inflation becomes too hi