Inflationary Psychology

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Dictionary Says

Definition of 'Inflationary Psychology'

The relationship between inflation and individuals' behavior. 

Investopedia Says

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.

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