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Impact Of Inflation On Financial Solutions And Analysis

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  • DESSISLAVA KOSTOVA-PICKETT

    (University of California)

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.

Suggested Citation

  • Dessislava Kostova-Pickett, 2017. "Impact Of Inflation On Financial Solutions And Analysis," Economics and Management, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 13(2), pages 2-10.
    • Handle: RePEc:neo:journl:v:13:y:2017:i:2:p:2-10
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    More about this item

    Keywords

    Financial decisions and analysis; inflation; financial transactions;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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