Inflationary Psychology

What Does Inflationary Psychology Mean?
The relationship between inflation and individuals' behavior.

Investopedia explains Inflationary Psychology
For example, in times of higher-than-average inflation, consumers have a higher likelihood of borrowing to buy things because they are assuming goods will cost more tomorrow than they do today. This increased buying only exacerbates inflation.

Related Terms

Consumer Price Index - CPI
Deflation
Disinflation
Hyperinflation
Inflation
Inflation-Indexed Security
Price Creep
Producer Price Index - PPI
Reflation
Retail Price Index - RPI
Stagflation
Stagnation
Treasury Inflation Protected Securities (TIPS)
More Related Terms

Related Links

All About Inflation - What causes inflation? How does it affect your investments and standard of living? This tutorial has the answers.
What You Should Know About Inflation - Find out how this figure relates to your investment portfolio.
Inflation-Protected Securities - The Missing Link - Inflation is an enemy to investors - except to those who invest in IPS, which guarantee a real rate of return with no credit risk.
The Consumer Price Index: A Friend To Investors - As a measure of inflation, this index can help you make key financial decisions.

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