Is the US experiencing a high inflation rate?
No, we are actually experiencing a low rate of inflation. In 2009 there were 8 months were we actually saw deflation.
Is inflation always bad for economy?
Inflation is certainly not always bad for economy, in fact a moderate level of inflation matching to it's growth rate is good for the country. Moderate inflation suggest demand in the system while no inflation or deflation suggest demand collapse which is much more dangerous than Inflation. For Instance US inflation is 1.5 to 2% while it's growth is 2-3%. This equation is ok. A Country having an inflation equal to it's growth rate is…
If there is high inflation the federal reserve will want to increase the money supply?
One of the two (according to the Keynesian) reason that can create high inflation is attributed to the increased money supply where "too much money chasing too few goods" Therefore, to reduce inflation, the Federal reserve would want to DECREASE the money supply. However, the increase in money supply can create stimulus demand and depreciate the exchange rate of the US Dollars which are considered (although questionable) beneficial to the US economy.
Why should the interest rate on your savings account be greater than the rate of inflation?
We cannot say that the interest rate on our savings account should be greater than the rate of inflation, but we can say that the interest earned on our overall savings or investments should be greater than the inflation rate. That is because: Let's say you invested Rs. 100 in a bank that gives you 3% interest every year, which means your 100 would have grown to be 103 by the end of the year…
How does inflation affect GDP?
Inflation is the primary and negative factor of all economic troubles including GDP, because it lowers consumerism, promote unemployment, and reduce import and export. -- Not quite. Inflation itself isn't necessarily a bad thing, and in fact deflation (negative price growth) can adversely affect the economy is well. High inflation can certainly hurt spending and employment, but inflation is just a term used for the growth rate of prices, which happens naturally as economies expand…
What was inflation back in the 1900s?
Inflation was the same thing back then as it is now. Inflation rates were and are different in different countries, so the amount of inflation in each country is always different, depending on the solidity of the local currency. In Britain the inflation rate in 1900 was 4.5%. In the USA it was 16.9% but then fell to -2.4 the next year. Inflation rates in the US changed greatly from year to year and were…
Which country has the highest cost of living?
Japan now has the highest cost of living Zimbabwe no longer has 1500% inflation Well Zimbabwe no longer has that high an inflation rate. 2 years ago it had the largest drop in the inflation rate. It just dropped to 1% because they dollarised economy (you probably never heard this because the media did not report it and this all happened overnight) You might ask "What does dollarise mean? well it means that they: Removed…
What was the inflation rate for the US in 2006?
the Federal site for these statistics is: http://www.bls.gov/cpi/ You can customize reports by year and region, and see inflation rates. From that, for the calendar year, the rate reported (unadjusted) is calc via 201.6/195.3 *100 = 3.23% ref: ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt the Federal site for these statistics is: http://www.bls.gov/cpi/ You can customize reports by year and region, and see inflation rates. From that, for the calendar year, the rate reported (unadjusted) is calc via 201.6/195.3 *100 =…
How much is 200000 francs from 1977 worth in todays us currency?
200,000 francs on January 1, 1977 would be worth 30489 euros today July 15, 2010 (not taking inflation into account). Based on the exchange rate for today July 15, 2010 (one Euro for 1.2947 US$), the sum would be worth 39,473 US$. taking a cumulated inflation (285% from January 1977, until July, 2010) into account , the sum would be 771,360 francs = 117,593 euros = 152,243 US$.
What libor means in intrnational banking?
LIBOR stands for London InterBank Offered Rate. It is the interest rate at which banks borrow money from one another when they are short of cash or have surplus. The LIBOR is widely used as a reference rate for financial instruments such as · forward rate agreements · short-term-interest-rate futures contracts · interest rate swaps · inflation swaps · floating rate notes · syndicated loans · variable rate mortgages · currencies, especially the US dollar