See how inflation quietly erodes what your money can buy — and whether saving keeps up.
Understand why money loses value over time and how inflation differs from nominal growth.
Raise annual inflation from 3% to 6%.
Before you act, predict what will happen. Does the time for your money to lose half its value get cut roughly in half? Then do it — did your prediction match what happened?
What your money is worth over time
Purchasing power of cash falls as prices rise; a nominal savings balance climbs in dollars — but those dollars buy less each year.