IMPACT OF INFLATION ON FINANCIAL SOLUTIONS AND ANALYSIS

DESSISLAVA KOSTOVA-PICKETT

 

Abstract

This article draws attention to the distortive effects of inflation on financial decisions and analysis. We will briefly comment on the often unclear phenomenon of inflation and its "nature". Financial transactions are executed and recorded using the common exchange environment, such as US dollars. Variations in this environment will be reflected in the numerical importance of these transactions. But we know that underlying transactions are economic compromises, that is, values are given and received. We must be careful not to misinterpret the changes in economic values with the changes in the environment used for effect and at the expense of these transactions. We will look at the results in several situations.

Key words

Financial decisions and analysis, inflation, financial transactions.

JEL Codes: Е31, G32

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