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Rising inflation will force the government's cost of borrowing money to rise sharply. With the US government currently carrying 17 TRILLION dollars in debt - 40% of it incurred in the last 5 years - a spike in inflation would force the Federal Reserve to raise interest rates (currently at or near zero), which would jack up the cost of servicing the government debt. This would cause real government spending on welfare programs and transfer payments to fall, because the government cannot borrow more than it is doing now. The result would probably be runaway inflation and a new Great Depression.
Similar to what Argentina is suffering now, with 40% per month inflation and the government practically facing an uprising.
What else can I help you with?
How much prices of goods and services are rising?
Inflation is where prices overall are rising. This is caused by the over printing of money by the Government.
What is inflation-prone?
Inflation prone is tending toward rising prices and costs, usually accompanied by rising incomes.
Economic term for an economy with rising inflation and unemployment?
This is called inflation or more precisely "price inflation".
What means that prices on average are rising?
Another name for rising prices is inflation.
What does the inflation rate indicate?
How quickly prices are rising.
How much prices of goods and services are rising?
Inflation is where prices overall are rising. This is caused by the over printing of money by the Government.
Who causes inflation (government or investors)?
Inflation is a measure of the rate of rising prices of goods and services in an economy. If inflation is occurring, leading to higher prices for basic necessities such as food, it can have a negative impact on society.
What is inflation-prone?
Inflation prone is tending toward rising prices and costs, usually accompanied by rising incomes.
What is inflation prone?
Inflation prone is tending toward rising prices and costs, usually accompanied by rising incomes.
What action did the government take to prevent rising inflation?
To combat rising inflation, the government often implements monetary policies, such as increasing interest rates to curb spending and borrowing. Additionally, fiscal measures may be employed, such as reducing government spending or increasing taxes to limit the money supply in the economy. These actions aim to stabilize prices and restore economic balance.
Why was inflation so high in 2022?
Inflation was high in 2022 due to a combination of factors such as increased consumer demand, supply chain disruptions, rising energy prices, and government stimulus measures.
Economic term for an economy with rising inflation and unemployment?
This is called inflation or more precisely "price inflation".
Why is Zimbabwe considered the poorest countries?
Mainly because it is. The economy of Zimbabwe has been decimated by the Mugabe government. Inflation is into treble figures and rising.
What means that prices on average are rising?
Another name for rising prices is inflation.
What is defined as the rising cost of products?
inflation
Why has inflation gone up in 2022?
Inflation has gone up in 2022 due to a combination of factors such as increased demand for goods and services, supply chain disruptions, rising energy prices, and government stimulus measures.
inflation?
rising prices
