1.How does inflation plays a big role in the time value of money?

Question

1.How does inflation plays a big role in the time value of money?

2.How does inflation affects the bank savings using time value of money?

3.what are the disadvantages of inflation on the time value of money?

4.Are there any advantages? If yes what they are?

5.what are the factors that lead to inflation?

6.how can we protect our money from the impact of inflation on time value of money?

7. How the effect of inflation on time value of money impact citizens
Am conducting a research and I need as much as answer as i can in order to provide a better analysis

Answer

You need to take a class and learn the principles. You have learned some code words, but not the principles.

"Inflation" is a code word for counterfeit money, but nobody in the business will ever admit that. Nevertheless, it is a foundational principal. There is hard money, meaning anything with commodity value, and there is currency, meaning any promise to pay. Very different things, both called "money". The difference is that promises can be created without limit, amounting to "hot air", and that is why we speak of "inflation" and "bubbles". But people who make their living creating this phony money insist that it is all honest and normal, and the money they create is real money while anybody who insists on hard money is just a nut.

Here are some sites that are devoted to teaching honest principals. Study the free materials until you feel like you know a few things. 
mises.org
fee.org

BTW you run into a lot of politics while studying economics. They are intimately associated, but not at all the same thing. You also have to put up with a lot of personal insults. It doesn't matter if you agree or disagree with what you learn, you just need to learn it.

Answer

When governments spend more money than they take in from taxes, they must &ldquo;create&rdquo; money to make up the deficit.&rdquo;
An example of this source of inflation is the domestic debt of the United States. 
How can inflation be cured? A number of economists wonder if the situation has not gone beyond curing. They compare it to a heroin addict who is too far gone, demanding more and more heroin to produce diminishing effects. If he continues, the drug will kill him. If he withdraws, the consequences of his drug-taking may still shorten his life.
To stop inflation, the overspending by governments, businesses and individuals must be severely cut. But this would mean people buying less, and so businesses would produce less. This would throw many people out of work, hence a severe recession or depression. The world economic system is now geared to such a high state of production from overspending that some observers claim it already is too late to be cut back drastically without causing about as much harm as is caused by the inflation itself.
For more information on this subject and others, please go to jw.org "Online Library."
Also for free downloads, publications or read online.

1.How does inflation plays a big role in the time value of money?

Answers (2)