In an inflationary environment, unevenly rising prices inevitably reduce the purchasing power of some consumers, and this erosion of real income is the single biggest cost of inflation. Inflation can also distort purchasing power over time for recipients and payers of fixed interest rates. The United States economy, similar to other world economies, is experiencing higher costs of borrowing after the Federal Reserve's increase in the Federal Funds interest rate. This has in turn increased the cost of borrowing for consumers and businesses. Inflation has been a contributing factor to global financial crises. Companies raise capital using two forms of capital namely: equity and debt. Research recent international financial crises that affected a specific company or companies and the root causes