Understanding inflation: Macro the Mightiest: ET Prime Special Series - Part 2 (B): Inflation… understand it because it means a lot to the stock market
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Synopsis This series aims to treat macroeconomics as a toolkit, not a lecture: Yes it is long read; maybe boring. So why read it? Because what finally matters to the stock market is a company’s earnings. And what impacts earnings is the macroeconomic condition of a country. So, to understand the market, you have to understand macroeconomics and its elements. In Part 2 (A) of the series, we looked at inflation, providing an overview of the different types of inflation, how it is calculated, and rural-urban and other variations that impact your wealth. In Part 2 (B) we will look at how inflation does not affect everyone equally, creating winners and losers. It will also tell you how to become “inflation-aware” and protect your wealth. Inflation does not affect everyone equally. Like a rising tide that lifts some boats while swamping others, inflation creates winners and losers across different segments of society. Understanding these distri...