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Entrenchment of Inflation

I am writing a new ebook as part of a series - and that includes this hot topic of inflation. When they say 'sticky' they mean that once inflation starts to happen it gets entrenched. Imagine I tell you that 'pasta' is going to go up in price. What do you do next time you are at the grocery store? You might buy an extra box. That puts stress on supply and creates shortages that exist only because we are talking about prices going up - in other words, the idea of higher prices causing higher prices.

When you understand time value of money, understand that real interest rates are actual rates minus inflation - that means today you are being paid 6% if you own debt, and losing 6% if you own dollars.

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