Bank/ Insurance companies/ Stock exchanges/ Software companies cause damaging level of inflation in society.

Inflation occurs when the reward for the contribution of goods and services by an individual or a business is highly disproportionate.

Bank's cost of money is the interest they pay on deposits, say 5%p.a. Bank's cost of lending includes their rent, advertisement, salary etc, say 2% p.a. If the bank lends money at 8% p.a, it makes 1% profit as reward for senior managers/directors/CEOs and shareholders.

But when they lend saying 8%p.a, but when they compound monthly, when it actually is 23.15%, they create a huge profit of 16.15% without proportionate goods and services in the market.

Insurance companies charge premiums on the basis of actuarial reports and past experiences. Say in a year of no/less claims than the previous year, there will be a huge profit in that year. If the directors and CEOs distribute this as their bonuses and to shareholders, money circulation in the market increases without sufficient production of goods and services. Instead they should give no claim bonus to insured.

In Stock Exchange, when an investor/speculator makes profit, there is no goods and services produced & supplied to market in proportion to the profits made. This causes inflation.

Software companies makes softwares that effectively sees many clerical staff out of job worldwide. Here the product created leads to getting rid of human services and the directors/CEOs of software companies make huge profits without sufficient goods and services being introduced to market for consumers benefit. They create double effect, one as inflation and another as recession.