Municipal bonds are debt obligations issued by states, cities, counties, and other governmental entities to raise money to build schools, highways, hospitals, and sewer systems, as well as many other projects for the public good. You don't have to share your earnings with the IRS or state taxing authorities. Rating services measure those risks. As a bond investor, you want to be reasonably sure that you'll get your interest payments on time and your principal back at maturity. Inflation and recession are recurring phases of a continuous economic cycle.
Experts work hard to predict their timing and control their effects.
Inflation occurs when prices rise because there's too much money in circulation and not enough goods and services to spend it on. When prices go higher than people can or will pay, demand decreases and a downturn begins. There's no ideal money supply. The Fed's goal is to keep the economy running smoothly by keeping an eye on the money that people have to spend. If demand is high, its price will increase relative to other currencies.