Inflation is a phenomenon where prices increase due to increased supply of money. If you make more money and inject it into the economy, prices will eventually increase. No one consciously does this, it just happens, the economy reacts to more money existing.
Interest rates
If you deposit money into a savings account, the bank pays you interest.
If you borrow money (get a loan), you pay the bank the interest.
Interest is the cost of borrowing money. I have to pay an additional cost (the interest) to borrow the money
Interest rates
If you deposit money into a savings account, the bank pays you interest.
If you borrow money (get a loan), you pay the bank the interest.
Interest is the cost of borrowing money. I have to pay an additional cost (the interest) to borrow the money
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