Inflation can have both positive and negative effects on the U.S. economy. Some of the effects of inflation include:

1. Decreased purchasing power: Inflation erodes the value of money over time, meaning that consumers can buy fewer goods and services with the same amount of money. This can lead to a decrease in the standard of living for individuals and households.

2. Increased costs for businesses: Inflation can lead to increased production costs for businesses, including higher wages, raw material costs, and other expenses. This can result in lower profit margins for companies, potentially leading to reduced investment and job creation.Q

3. Uncertainty and volatility: Inflation can lead to economic instability and uncertainty, as rising prices can make it difficult for businesses and consumers to make long-term financial plans. This can lead to lower consumer confidence and decreased spending, which can further impact economic growth.Q

4. Decreased savings and investment: Inflation can erode the value of savings and investments over time, as the purchasing power of money decreases. This can discourage individuals from saving and investing, which can have long-term implications for economic growth and development.

However, The moderate inflation is generally seen as a sign of a healthy economy, as it indicates that demand for goods and services is strong and wages are rising. However, high or hyperinflation can have serious negative consequences for the economy, including reduced consumer purchasing power, decreased business profitability, and economic instability.

I think the US and EUropean economy should expect more inflation when the BRICS come up with their own currency, which will be introduced in this month. Indeed, it may demand them years to fully implement.