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Meaning of Macroeconomics

You must have heard of the term Microeconomics hundreds of times. So let’s now try to understand it in simple terms. Macroeconomics is focused on the movement and trends in the economy. The field of economics studies the behavior of the entire economy. Thus, we can say that it is that part of economic theory that studies the economy in its totality or as a whole.

Let us now understand how it is different from Microeconomics. Microeconomics deals with individual economic units like households, firms, or industries. On the contrary, Macroeconomics deals with the whole economic system, like national income, total savings and investment, total employment, total demand, total supply, general price level, etc. In this article, we are going to study the determination of aggregates of the economy and what causes fluctuations in them. We will understand the reason for the fluctuations and how to ensure the maximum level of employment and income in a country.

Importance of Macroeconomics

It helps in understanding the functioning of a complex modern economic system. Macroeconomics gives us a clue into how the economy functions as a whole and how the level of national income and employment is determined on the basis of aggregate demand and aggregate supply.

In a certain way, macroeconomics does help in achieving the goal of economic growth, a higher level of GDP, and a higher level of employment.

It also analyses the forces which determine the economic growth of a country. Understanding the macroeconomic problems gives a cue on how to reach the highest state of economic growth and sustain it.

Bringing stability in price level and analysis of the fluctuations in business activities is another set of macroeconomic problems that are taken care of by a better understanding of macroeconomics.

Macroeconomics helps in suggesting policy measures to control inflation and deflation.

It explains the factors affecting the balance of payment. It also identifies causes of deficit in the balance of payment and suggests measures.

Helps to solve economic problems like poverty, unemployment, inflation, deflation, etc. The solution for such macroeconomic problems is possible at the macro level only.

A better understanding of the country’s macroeconomics helps formulate correct economic policies and coordinate with international economic policies.

Macroeconomics Problems: What Are They?

Now that we have understood the meaning and importance of macroeconomics, let’s try to grasp some ideas about some common macroeconomic problems. In the earlier paragraphs of this article, we have heard some terms related to macroeconomics. Some of them were inflation, unemployment, the balance of payment, etc. So, now let’s get to know them better. Have you ever tried to think of when these macroeconomic problems arise? To get your doubts clear, let me share the answer with you.

Macroeconomic problems arise when the economy does not adequately achieve the goals of full employment, stability, and economic growth. As a result of which, there is a cascading effect that follows. Unemployment results when full employment is not achieved. Inflation creeps in when the economy falls short of the goal of stability. The phase of stagnant growth arises when the economy is not adequately attaining the goal of economic growth. All these problems are due to too little or too much demand for gross production. For instance, unemployment results from too little demand, and inflation emerges with too much demand.


Think that there are 4 boxes of a full-sized pizza, and there are 10 hungry moths that are ready to grab a bite. But only 4 of them get to have all 4 boxes of pizza. So rest of the six people are not utilized here in this eating completion. Though it’s a funny scenario, it can relate exactly to why unemployment creeps in. In the same way, unemployment arises when factors of production that are willing and able to produce goods and services are not actively engaged in production. Unemployment means the economy is not attaining the macroeconomic goal of full employment. Unemployment is a problem because:

Less output, and thus arises the problem of scarcity in the economy.

Due to this, the owners of unemployed resources receive less income. This gradually reduces the standard of living.

Thus unemployment rate ultimately tells us how many people from the available labor force pool cannot find work. It is generally observed that unemployment levels tend to be low when the economy witnesses growth from period to period, which is indicated in the GDP growth rate. This is because with rising (GDP levels, the output is higher, and hence, more laborers are needed to keep up with the greater levels of production. Generally, the better the economy, the lower the unemployment rate, and vice-versa.


Inflation is a problem because:

Since there is a rise in the price of goods and services, the purchasing power of money declines. This, in turn, reduces financial wealth and lowers living standards.

Greater uncertainty surrounds long-run planning.

Income and wealth tend to be haphazardly distributed among various sectors of the economy and the resource owners.

Unemployment and inflation tend to arise at different phases of the business cycle. The probability of these problems will vary accordingly. Sometimes, unemployment is less of a problem, and inflation is more. At other times, unemployment is more of a problem, and inflation is less. Now we will understand how these two problems are connected to the two primary business cycle phases.

Contraction Phase: During the contraction phase of the business cycle, there is a general decline in economic activity. The aggregate demand is less, meaning there is less output produced, and thus fewer resources are employed for the same. For this reason, unemployment tends to be a key problem here. But at the same time, since markets tend to have more surpluses than shortages, inflation tends to be less of a problem during this phase.

Interest Rates

Stagnant Growth

Stagnant growth occurs when the Supply of products is not increasing or decreasing below the benchmark. An increase in the total production of goods and services is generally for the growth of the economy. This is necessary to keep pace with an increase in the population and expectations of rising living standards. Stagnant growth exists if total production does not keep pace with these expectations. Hence, the macroeconomic goal of economic growth is unsuccessful. The probable reasons for stagnant growth can be the quantity and quality of the resources used for production.

So let’s understand the reasons in detail. The quantities of the four production factors can restrict production growth. These factors are labor, capital, land, and entrepreneurship. If a lazy person decides to quit his job and spend his time doing nothing but sleeping on his parent’s living room sofa, then the total quantity of labor declines. Thus the quantity of labor is based on both the overall population and the portion of the population willing and able to work.

If, for example, Government regulations and High taxes discourage some industries from building new factories in the manufacturing sector, it will totally decline the quantity of capital. So this is all about the Macroeconomics Problems.

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Google Pixel 6/Pro Now Supports Heart Rate And Breathing Rate Detection

The heart rate detection function is achieved by using the cameras of Google Pixel 6 and Pixel 6 Pro to recognize subtle changes on the user’s index finger. The new version of Google Fit can use these data to recognize the user’s heart. Also, within a few seconds, it can get the user’s specific heart rate value.

How to use Google Pixel 6 / 6 Pro to measure heart rate

If users want to use this feature, here are a few steps

Open the new version of Google Fit

Swipe down from the health information area at the top of the page to the “Discover” area

Find the “Check Heart Rate” function card

Place your index finger on the rear camera to start heart rate monitoring.

The respiratory rate detection function uses the front camera of the mobile phone to detect the ups and downs of the user’s chest cavity to obtain the result of the detection value. It is important to note that these features are not fully available for now. 

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The two functions are marked as “early experience” on some users’ mobile phones. As far as accuracy is concerned, there are claims that it is quite accurate. There are reports that the accuracy of the heart rate detection function is very high, and in a darker place, the final result will have a deviation of about 30 bpm. Obviously, these features will need more specific tests to ascertain their accuracy.

Google Pixel 6 specifications

6.4-inch (1080 x 2400 pixels) FHD+ AMOLED display with 90Hz refresh rate, Corning Gorilla Glass Victus protection

Google Tensor processor (2x 2.80GHz Cortex-X1 + 2 x 2.25GHz Cortex-A76 + 4 x 1.80GHz Cortex-A55) with 848MHz Mali-G78 MP20 GPU, Titan M2 security chip

8GB LPDDR5 RAM, 128GB / 256GB UFS 3.1 storage

Android 12

Dual SIM (nano + eSIM)

8MP front camera with ƒ/2.0 aperture, 84° wide field of view,

In-display fingerprint scanner

Dimensions: 158.6×74.8×8.9 mm; Weight: 207g

USB Type-C audio, Stereo speakers, 3 microphones

Dust and Water-resistant (IP68)

5G SA/NA, 4G VoLTE, Wi-Fi 6E 802.11ax  (2.4/5 GHz), Bluetooth 5.2 LE, GPS, USB Type C 3.1 (1st Gen), NFC

4614mAh battery with 30W wired fast charging, 21W wireless charging

Google Pixel 6 Pro specifications

6.7-inch (3120 x 1440 pixels) curved pOLED LTPO display with 10Hz-120Hz adaptive refresh rate, Corning Gorilla Glass Victus protection

Google Tensor processor (2x 2.80GHz Cortex-X1 + 2 x 2.25GHz Cortex-A76 + 4 x 1.80GHz Cortex-A55) with 848MHz Mali-G78 MP20 GPU, Titan M2 security chip

12GB LPDDR5 RAM, 128GB / 256GB / 512GB UFS 3.1 storage

Android 12

Dual SIM (nano + eSIM)

50MP rear camera with Samsung GN1 sensor, f/1.85 aperture, 12MP Ultra-wide camera with Sony IMX386 sensor, f/2.2 aperture, 48MP telephoto camera with Sony IMX586 sensor, ƒ/3.5 aperture, 4X optical zoom, 4K video recording at up to 60fps

11MP front camera with Sony IMX663 sensor, ƒ/2.2 aperture, 94° field-of-view, 4K video recording at up to 60fps

In-display fingerprint scanner

Dimensions: 163.9×75.9×8.9 mm; Weight: 210g

Dust and Water-resistant (IP68)

USB Type-C audio, Stereo speakers, 3 microphones

5G SA/NA, 4G VoLTE, Wi-Fi 6E 802.11ax  (2.4/5 GHz), Bluetooth 5.2 LE, ultra-wideband (UWB), GPS, USB Type C 3.1 (1st Gen), NFC

5000mAh battery with 30W wired fast charging, 23W wireless charging

Seasonally Adjusted Annual Rate (Saar)

Seasonally Adjusted Annual Rate (SAAR)

An adjustment for seasonal variations that occur through the corresponding data period

Written by

CFI Team

Published December 27, 2023

Updated July 7, 2023

What is the Seasonally Adjusted Annual Rate (SAAR)?

The seasonally adjusted annual rate (SAAR) is an adjustment made to financial and economic data to take into account seasonal variations that occur through a period and is expressed as an annual total.

Why is the Seasonally Adjusted Annual Rate a Crucial Measure

Seasonal variations in data are a very common occurrence. This is because, during a data period, there are cyclical boom and bust periods because of social, political, and economic conditions that create volatility and periodic changes in demand. Hence, data is directly and indirectly affected by such volatility and must be smoothed or compensated for when it is analyzed.

It is why a seasonally adjusted annual rate is so important. It takes into account the seasonal variations that occurred through the corresponding data period and adjusts the data accordingly, thereby removing the effect of seasonality and making the data more reliable and accurate.


The seasonally adjusted annual rate (SAAR) is an adjustment made to financial and economic data to take into account seasonal variations that occur through a period and is expressed as an annual total.

SAAR takes into account the seasonal variations that occurred through a data period and adjusts the data accordingly, thereby removing the effect of seasonality and making the data more reliable and accurate.

An important measure called the “seasonal factor” is used to calculate the SAAR. The seasonal factor is calculated by taking the unadjusted data (monthly or quarterly) and dividing it by the annual average number (monthly or quarterly).

Calculating the SAAR

An important measure called the “seasonal factor” is used to calculate the SAAR. The seasonal factor is calculated by taking the unadjusted data (monthly or quarterly) and dividing it by the annual average number (monthly or quarterly).

Say, for example, PepsiCo produced 780,000 bottles of Pepsi in a year. The company’s total production in May was 98,000, in June was 82,000, in July was 96,000, and in August was 78,000.

Therefore, the seasonal factor for PepsiCo for the months of:

The SAAR is calculated by taking the unadjusted monthly (or quarterly) estimates and dividing by the corresponding seasonality factor, and multiplied by 12 (or 4, if quarterly).

Importance of the SAAR

The SAAR is important because of the following reasons:

1. Accounts for seasonal fluctuations

The SAAR is an important data measure because it accounts for seasonal fluctuations occurring throughout the data period. It is important to account for seasonal variations when trying to extrapolate individual data points to predict annual results, because they may not show the true picture; individual months results may be affected by the boom or bust of seasonality and SAAR removes these effects.

2. Makes data more reliable and accurate

By taking into account the seasonal variations and adjusting data accordingly, the SAAR makes the data available more reliable and more accurate – one that provides a true financial and/or economic picture.

3. Makes comparisons easier

The SAAR is also very important because it helps make data comparisons much easier. It is difficult to compare raw data between different time periods or between different businesses when it is unadjusted. As the data groups may be affected by cyclical trends differently and a direct comparison is not apples to apples.

Adjusting the data and eliminating seasonal variations makes comparisons between different periods and between different companies much easier and helps draw accurate and reliable conclusions.

4. Helps make informed decisions

By removing the seasonal impact on business data, the SAAR helps make informed business decisions. It helps in the decision-making process by providing a clearer financial picture – one that is not inflated or deflated by data seasonality.

Real-life Examples of Business Data Seasonality

Some real-life examples of business data seasonality include:

Ben & Jerry’s experiences a higher sales volume in the months of summer than in winter

Ski resorts in Switzerland report higher occupancy rates in December/January/February than the rest of the year.

Staples experiences a higher sales volume during the back-to-school month compared to the rest of the year.

Related Readings

CFI is the official provider of the Commercial Banking & Credit Analyst (CBCA)™ certification program, designed to transform anyone into a world-class financial analyst.

To keep learning and developing your knowledge of financial analysis, we highly recommend the additional resources below:

Conversion Rate Optimisation For Mobile

How to focus your efforts to improve mobile conversion performance by using the full range of mobile user research techniques and tools

For the past few years in the digital industry every year has talked about as ‘the year of mobile’. Despite this, many digital marketeers are still focusing CRO activity on desktop and leaving mobile devices as an afterthought. Latest stats show that mobile continues to be a growth platform for people accessing websites, and that those people are getting more comfortable using their phones for buying online.

As shown on Smart Insights last year, mobile traffic overtook desktop as mobile phone use continued to rise at a staggering rate. Stats from the same report also show that desktop users are around three times more likely to convert than those visiting a site from a smartphone; showing that there’s a lot of potential for improvement for mobile conversion rates.

This case study from Google shows that ProFlowers saw a 20-30% increase in conversions after optimising their site for smaller screens, and there are many other examples of the big improvements that come from focusing on mobile.

As well as a lower conversion rate there are other mobile specific issues that should be considered. In April of last year Google released an algorithm update, dubbed ‘mobilegeddon’ by some, which affects how websites rank in search results on mobile devices. Search visibility was impacted by what Google considered to be mobile ‘usability issues’ on sites, leading to a drop in rankings for those which were difficult to use on smartphones.

This blog post will give guidance 5 techniques and relevant tools to review and improve mobile user experience and mobile conversions to ensure that your site performs better for mobile users across a range of mobile devices. At the end of the article I take a look at some common challenges of creating and testing mobile experiences.

1. Website analytics service

People don’t use mobile devices in the same way and for the same things as desktop or laptops, so research has to be different. An essential starting point for this research should be your analytics service. Segmenting your audience into mobile and desktop users will show you how these two audiences differ in their behaviour on your site, and will also highlight any particular problem areas.

2. Other online user research tools

3. Stakeholder interviews

Rather than just using insight from analytics it’s a good idea to conduct stakeholder interviews to get feedback from people who work with the site on a regular basis. People who are employed in the customer service team for a site will often have a good idea of the type of frustration that mobile users report to them on a regular basis.

4. Customer feedback survey tools

You can also ask for customer feedback through your site on a mobile to find mobile specific issues. Using tools like Qualaroo will help make this process simple, but be careful not to frustrate your users by continually asking for feedback. This can be harder to obtain from mobile device users, due to difficulties using mobile keyboards, but as long as you keep your questions short and simple, or ideally limit yourself to one question, then the feedback can be very valuable.

5. User testing

User testing is vital here to get a clear picture of how ‘real’ users find their way through your website. User testing often involves setting users a series of tasks to complete on a website and seeing how easy they find them. Observing people using the site in this way is insightful and often shows people using your site in a completely different way to how you imagined!

User testing on mobile devices can require more thought and planning than desktop tests. Users may be more comfortable using their own device, and also using it from their own home. At Fresh Egg we often use chúng tôi as this enables people to do both. Another option is to run in-person ‘moderated’ testing using a tool like UX Recorder.

In order to record natural interactions and get valid results it’s important here to replicate the real user experience as closely as possible, this may mean using a room with low light or encouraging users to lounge on a sofa. You may want to draw the line at encouraging people to complete the test on the toilet though!

Common mobile usability problems

Despite more focus on mobile development there are still some very common issues that occur across a range of sites.

Menus – Hamburger menus have been a regular subject for A/B testing. Despite this there are conflicting results from different studies:

Some studies show that users understand and interact with hamburger menus, others have shown that they have a negative impact on engagement. I generally recommend using the word ‘menu’ alongside a hamburger icon. This not only helps with clarity but also provides a larger target area for people to press. If you are working with a multilingual website though then this can be an issue as the word ‘menu’ can be quite long in some languages.

Category pages – When showing categories on mobile it’s often better to use a list rather than grid view for products to avoid overcrowding the small screen. Filtering products (by type, size, colour etc.) can be an issue, as it often is on desktop sites too. User testing on mobile is useful here to ensure that your filtering options are clear and usable to your audience.

Forms – Mobile forms can be difficult to complete due to the lack of space and also the lack of a separate keyboard. When designing mobile forms particular attention should be applied to the type of input required from the user; avoiding dropdown menus is often a good starting point. Other tips for improvement here include; minimising the number of fields, placing labels above fields, showing the correct version of the keyboard and ensuring that all form elements are ‘thumb friendly’ and big enough to select on small screens. Good form accessibility can also help boost conversions.

Checkout – When Checkouts suffer usability problems they can often lead to a big impact on revenue. As with designing mobile forms, the elements used throughout the checkout process need to be large enough to be selected easily. It is also important that users can save their details on mobile, preventing them from having to enter them again each time they return. Using a clear tabbed (or layered divs), step-by-step process will avoid overwhelming the user with one big form that they need to fill out. The form recommendations in the section above are also all important to the checkout process.

Payment options – Mobile users will often want to make their payment quickly and simply, without having to get their credit card out. Offering alternative payment methods such as PayPal (and PayPal Express Checkout) is a must to help streamline the payment process.

Speed – The time it takes for a site to load on mobile is critical. Although connection speeds are increasing mobile load times still often lag behind those of desktop sites. Slow load times can frustrate users, and also have a serious impact on the likelihood of them converting. To combat slow load times you should reduce the file size of your images, enable caching and use a tool (such as Google PageSpeed Insights) to check for additional ways to speed things up.

Split testing your mobile designs

One way to better understand how your designs work on mobile devices is to split test them. Most split testing tools will give you the ability to target specific types of user, such as a mobile or tablet audience. These means that you can run tests purely for these users, and monitor their impact accordingly.

If tests are run on all versions of a site then the results can still be segmented to show their impact on smartphone users. A recent Fresh Egg test ran across tablet and mobile devices to see the impact of a new mobile designed site. This saw an increase in revenue per visitor of 41% on tablet and 32% on mobile.

To ensure that your split tests are set up correctly and not causing any issues you should be sure to run thorough Quality Assurance (QA) testing before making them live. To do this you may need to use various different devices to make sure that it works on the most popular smartphones. If you have your own device lab then that’s great! If not though then you might want to find out which are the most used mobile device types (by checking your analytics) and then borrow those phones to run you QA testing. Another alternative would be to use a phone browser simulator, BrowserStack offer a good tool for this. While these are not a perfect substitute for the real thing, they will uncover most of the issues that would be found when using the site on a particular smartphone.


Mobile users should be a key focus for your CRO campaigns. With mobile and tablet usage now making up the majority of website traffic it’s more essential than ever to make sure that your site is easy to use on small and touchscreen devices.

You should start with mobile research, both quantitative and qualitative, to find out where there are opportunities to improve your site on mobile devices. Common problem areas on mobile devices that you might want to focus on include:

navigational menus

category pages


the checkout process

payment options

site load speed

Once you’ve highlighted some areas to focus on, alternative designs can be split tested to measure their potential impact

As it’s often an overlooked area of website design, running A/B testing on mobile devices is a great way to see some positive results from your tests.

Examples And How To Find The Interest Expense?

What is Interest Expense?

The term “interest expense” (IE) refers to the non-operating expense in the income statement that represents the total cost of borrowings payable for a given period. IE denotes the interest obligation accrued on borrowings (such as loans, bonds, or lines of credit) availed during the period. Still, it doesn’t mean that the amount of the interest has been paid during that period.

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Explanation of Interest Expense

The IE is the aggregate of the cost of borrowing funds from banks, investors, and various other sources. The reasons for borrowing primarily include short-term working capital requirements, major capital expenditure, mergers & acquisitions, etc. Although IE primarily includes interest payable arising out of borrowings, it also comprises lease expenses, similar to IE.

The formula for Interest Expense

Simple Interest Expense = P * t * i


P = Outstanding debt balance

t = No. of years

i = Annualized interest rate

The formula for compound IE can be derived using outstanding debt balance, annualized interest, no. of years, and no. of compounding periods in a year. Mathematically, it is represented as,

Compound Interest Expense = P * [(1 + i/n)t*n – 1]


P = Outstanding debt balance

t = No. of years

n = No. of compounding in a year

i = Annualized interest rate

How Does Interest Expense Work? Examples of Interest Expenses

Following are the examples of IE :

Example #1

Let us take a company’s example and illustrate the IE computation. The company recently borrowed $15 million from a bank for a short period of 8 months, after which it will be repaid in one bullet payment. Determine the IE borne by the company for the period if it is to be calculated at a simple interest rate of 10%.

Given, Outstanding debt, P = $15,000,000

Interest rate, i = 10%

No. of years, t = 8/12 year = 0.67 year

IE can calculate using the formula given below:

Simple Interest Expense = P * t * i

= $15,000,000 * 0.67 * 10%

= $1,000,000

Therefore, the IE accrued for the period is $1,000,000.

Example #2

Let us take another example to explain how IE can vary due to compounding frequency. Let us assume outstanding debt of$1 million across the period of 1 year at an interest rate of 10%. Determine the interest expense if the compounding is done:







Given, Outstanding debt, P = $1,000,000

No. of years, t = 1 year

1. In the case of daily compounding, n = 365.

Now, the IE can calculate using the compound interest method,

Compound Interest Expense   = P * [(1 + i/n)t*n – 1]

= $1,000,000 * [(1 + 10%/365)1*365 – 1]

= $105,155.78

2. In case of monthly compounding n = 12

Now, the IE can calculate using the compound interest method,

Compound Interest Expense = P * [(1 + i/n)t*n – 1]

= $1,000,000 * [(1 + 10%/12)1*12 – 1]

= $104,713.07

3. In the case of quarterly compounding, n = 4

Now, the IE can calculate using the compound interest method,

Compound Interest Expense = P * [(1 + i/n)t*n – 1]

= $1,000,000 * [(1 + 10%/4)1*4 – 1]

= $103,812.89

4. In case of half-yearly compounding n = 2

Compound Interest Expense = P * [(1 + i/n)t*n – 1]

= $1,000,000 * [(1 + 10%/2)1*2 – 1]

= $102,500.00

5. In the case of annual compounding, n = 1

Now, the IE can calculate using the compound interest method,

Compound IE = P * [(1 + i/n)t*n – 1]

= $1,000,000 * [(1 + 10%/1)1*1 – 1]

= $100,000.00

In this example, we can see that the IE incurred increases with the compounding frequency in the compound interest method.

How to Find the Interest Expense?

From the income statement, the IE can also be calculated as the difference between the operating profit or EBIT (Earnings Before Interest and Taxes) and the pre-tax profit or EBT (Earnings Before Tax).

Besides the income statement, IE can also calculate on the basis of the debt schedule, given that it captures all the major information pertaining to the debt on the company’s balance sheet. The interest expense can be calculated as the product of the average debt balance for the period and the effective interest rate.

What Causes Interest Expenses to Increase

The IE of a company can increase in either of the two cases:

If the debt balance increases, which can attribute to a new loan or a higher drawdown of the available limit.

If the interest rate increases due to deterioration in the credit profile.

Income Statement

Usually, companies capture IE as a separate line item after EBIT. However, some companies also put in under SG&A expenses (Selling, General, and Administrative)based on their accounting practices.

Also, common practice is to report IE as a separate line item. However, there are instances where companies combine it with interest income and report Net Interest Expenses.


So, it can be seen that IE is a very important line item in a financial statement as it captures the borrowing cost incurred by a company. Further, it can also be used to derive various metrics (such as interest coverage ratio) to indicate a company’s credit.

Recommended Articles

This is a guide to Interest Expenses. Here we also discuss the introduction and how interest expense works. Along with examples. You may also have a look at the following articles to learn more –

Can Bitcoin, Ethereum, And Big Eyes Coin Be A Hedge Against Inflation?

Cryptocurrencies have already made their mark in a short span of around 15 years. It wasn’t long ago that Bitcoin (BTC) came to the fore in 2009 and the world went crazy about the promise it showed. Since then, thousands of cryptocurrencies, including Ethereum (ETH), have emerged and offered traders, businesses, and investors opportunities to make it big. One such cryptocurrency is Big Eyes Coin (BIG), which is in stage 11 of its presales.

The 200% Bonus is About to Expire Inflation in a Flagging Global Economy

The global economy seems to be heading toward another spell of recession. It is quite evident by the increasing concerns about growing inflation and the devaluation of national fiat currencies. The situation has forced many users to explore the potential of cryptocurrencies, which are now looked upon as a hedge against inflation.

Let’s examine the question of whether these cryptocurrencies like Bitcoin, Ethereum, and Big Eyes Coin can be used as a hedge against inflation and which factors contribute to their potential as an inflation hedge.

What is Inflation?

Inflation is a growing concern worldwide. It is a constant surge in the prices of goods and services in an economy or a country.

Inflation has a negative impact on the overall economy of any country. Rising inflation compresses the purchasing power of money, and hence the value of fiat currency declines. Apart from impacting the economy, it also hampers the value of investments and savings.

Cryptocurrencies are generally immune to the general impact of inflation on an economy. Big Eyes Coin, Bitcoin, and Ethereum operate on a decentralized network which perfectly places them to stay away from the impacts of pressurized economic and political situations, unlike traditional fiat currencies. In turbulent economic times worldwide, cryptocurrencies have emerged as an attractive option for investors, especially as an alternative to fiat currencies as a hedge against inflation.

Bitcoin Takes A Bite

As we know, Bitcoin (BTC) has a limited supply of 21 million coins. The supply will remain finite and will not increase to accommodate rising inflation. That’s why Bitcoin is a potential hedge against inflation because its value is less likely to be affected by inflationary pressures in an economy.

Ethereum- The Student Becomes The Master

Ethereum (ETH) is not limited by a finite supply and has a flexible monetary policy. The flexible monetary policy allows for adjustments to the supply to accommodate changes in its demand. This very fact means Ethereum is less likely to be a hedge against inflation. However, it does offer the potential for growth and development opportunities in many other ways.

Big Eyes Coin Explodes Into A New Presale Phase

The cat-themed Big Eyes Coin is a security and privacy-focused cryptocurrency that operates on a decentralized network. It is still in the early phase of its existence and is not widely adopted or recognized. However, the level of interest it has garnered in its presales shows promise and it can emerge as a likely hedge against inflation in times to come.

The world is facing an enormous challenge of the rising prices of products and services, which is putting extra pressure on the salaried class. The rising inflation reduces people’s buying power but those who invest in cryptocurrencies generally stay immune to the general impact of rising prices on an economy.

Bitcoin, Ethereum, and Big Eyes Coin each have unique characteristics that make them potential hedges against inflation. However, it is important to understand the risks involved, conduct prior research, or consult a crypto expert before making the move.

Find Out More About Big Eyes Coin (BIG):

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