Inflation Inflation is a general increase in prices and fall in the purchasing value of money. From the view of consumers, an increase in prices is not welcomed. Why do many countries target 2% inflat

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Inflation Inflation is a general increase in prices and fall in the purchasing value of money. From the view of consumers, an increase in prices is not welcomed. Why do many countries target 2% inflation? The brief answer is that inflation leads to economic growth. If you own cash at the time of inflation, the value of your cash will decrease and you will be encouraged to consume and invest instead of saving. This cash flows from savings to consuming and investments lead to expand the economy. Also, it is expected for companies to increase sales because of the price rise. This corporate performance increases the wage and creates the wage-price spiral which suggests that rising wages increases disposable income raising the demand for goods and causing prices to rise. The Japanese bank has targeted 2% inflation since 2013. How come do they stick to 2%? One of the reasons is that the USA and other developed countries also mark 2%. When we look back on history, we can see that to follow other countries’ inflation rate enables to avoid strong yen. When we think inflation rate as a decreasing rate of the value of money and set a lower goal than others, there is a possibility that the currency is treated as a currency that has relatively low risks. This is why the 2% is important for the Japanese bank.

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What you have written

Inflation

Inflation is a general increase in prices and fall in the purchasing value of money. From the view of consumers, an increase in prices is not welcomed. Why do many countries target 2% inflation? The brief answer is that inflation leads to economic growth. If you own cash at the time of inflation, the value of your cash will decrease and you will be encouraged to consume and invest instead of saving. This cash flows from savings to consuming and investments lead to expand the economy. Also, it is expected for companies to increase sales because of the price rise. This corporate performance increases the wage and creates the wage-price spiral which suggests that rising wages increases disposable income raising the demand for goods and causing prices to rise.

The Japanese bank has targeted 2% inflation since 2013. How come do they stick to 2%? One of the reasons is that the USA and other developed countries also mark 2%. When we look back on history, we can see that to follow other countries’ inflation rate enables to avoid strong yen. When we think inflation rate as a decreasing rate of the value of money and set a lower goal than others, there is a possibility that the currency is treated as a currency that has relatively low risks. This is why the 2% is important for the Japanese bank.

Feedback

This is a good attempt, so well done. Please see below an explanation of the things I have underlined:

Inflation is a general increase in prices and fall in the purchasing value of money. From the view of consumers, an increase in prices is not welcomed. - This can be condensed into one sentence, making it simpler to read as well as changing some of the wording.

the value of your cash will decrease and you will be encouraged to consume and invest instead of saving - This sentence is a bit 'wordy' so again, simple language can be used here. I found the sentence "you will be encouraged to consume and invest instead of saving" a bit awkward in tone because it sounds like something some people may object to. It also wouldn't be written this way if it was in a newspaper article, or an economics book for example. Another thing I noticed, people can either consume or invest, not do both.

How come do they stick to 2% - This can be related to my last point. It probably wouldn't be used if it was written in a newspaper article or an economics book as it's more informal.

also mark 2% - A bit awkward in tone. You could say: The USA and other developed countries' have a target of 2% inflation.

we can see that to follow other countries’ inflation rate enables to avoid strong yen - I'm a bit confused by this sentence because it says "enables us to avoid a strong yen". Surely the yen being strong during inflation is a good thing?

inflation rate as a decreasing rate of the value of money and set a lower goal than others, there is a possibility that the currency is treated as a currency that has relatively low risks. - Wordy sentence which can be condensed and made simpler.

This is why the 2% is important for the Japanese bank - You don't need to add this at the end because you have already told the reader why it's important for Japanese banks to have a 2% target of inflation.

The Japanese bank - Do you mean one specific bank in Japan or all of the banks in Japan? In the case of economics, it's more likely all Japanese banks are affected rather than just one.

I noticed a few words missing which I have added, and some words can be used as a contraction (e.g. isn't, there's), again, to make reading more simple.

Here is what I would write:

Correction/Suggestion

Inflation is a general increase in prices and a fall in the purchasing value of money, which isn’t welcomed by consumers. Why do many countries have a 2% target in inflation? The brief answer to that is that inflation leads to economic growth. If you own cash at the time of inflation, its value will decrease, and it is encouraged to either consume or invest instead of saving it. The cash flows from savings to consuming, as well as investments that lead to expanding the economy. Also, it is expected that companies increase sales due to the price rise. Their performance increases wages, which creates a wage-price spiral, suggesting that an increase in wages means disposable income and thus raises the demand for goods and prices to rise.

Japanese banks have had a target of 2% in inflation since 2013, so why do they stick to 2%? The reason is that the USA and other developed countries also have a target of 2% in inflation. When we look back on history, we can see that following other countries’ inflation rates enable us to avoid a strong yen. When we think of inflation as a decrease in the value of money, there’s a possibility that the currency is treated as one with relatively low risks.

Source: Grammarly

Thank you for your correction, Liane!

That is really great! Well done! Just a couple of little things. Inflation is a general increase in prices and a (add) fall in the purchasing value of money. From the view of consumers, an increase in prices is not welcomed. Why do many countries target 2% inflation? The brief answer is that inflation leads to economic growth. If you own cash at the time of inflation, the value of your cash will decrease and you will be encouraged to consume and invest instead of saving. This cash flows from savings to consuming and investments lead(s) to expand(ing) the economy. Also, it is expected for companies to increase sales because of the price rise. This corporate performance increases the wage and creates the wage-price spiral which suggests that rising wages increases disposable income raising the demand for goods and causing prices to rise. The Japanese bank has targeted 2% inflation since 2013. (Why) do they stick to 2%? One of the reasons is that the USA and other developed countries also (mark -not sure this is the right word - maybe "use?" 2%. When we look back on history, we can see that to follow other countries’ inflation rate enables (us) to avoid (a) strong yen. When we think inflation rate as a decreasing rate of the value of money and set a lower goal than others, there is a possibility that the currency is treated as a currency that has relatively low risks. This is why the 2% is important for the Japanese bank.

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