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High inflation makes currency weak because it means that the currency is worth less. This can be seen in WW2 Russia and Germany where it was more cost effective to burn the excess money the people had instead of trying to buy firewood. High inflation means that things cost more while money is worth less. A loaf of bread may go up in price to $10 instead of $2, meaning it takes more of the money to buy the same product.
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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 not bad though it is always preffered to have lower inflation and high growth rate. But it is difficult to achieve on a continuous basis. Reserve banks all over the world prefer and try hard to have moderate inflation and would worry if there is a situation of deflation. But too high inflation will make the currency of the country very weak against the major global currencies and will bring the economy to it's knees, like what happened in case of Zimbabwe.
What is weak economy?
An economy that cannot balance its trade, a consumer economy instead of a producer economy, with lower GDP,high level of unemployement and inflation, that cannot service its debt, weak financial institutions and deficits.
When you buy another currency do you want a weak or strong currency?
strong
When one currency is getting stronger and other goes weak in forex which one you have to buy or sell?
In order to make profit you should buy the currency that is getting stronger and sell the currency that is getting weaker.
Why does Japanese currency have a weak exchange rate?
The Japanese currency has a weak exchange when compared to the major external currencies due to the difference in their trade balance and poor internal economic factors
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 not bad though it is always preffered to have lower inflation and high growth rate. But it is difficult to achieve on a continuous basis. Reserve banks all over the world prefer and try hard to have moderate inflation and would worry if there is a situation of deflation. But too high inflation will make the currency of the country very weak against the major global currencies and will bring the economy to it's knees, like what happened in case of Zimbabwe.
What is weak economy?
An economy that cannot balance its trade, a consumer economy instead of a producer economy, with lower GDP,high level of unemployement and inflation, that cannot service its debt, weak financial institutions and deficits.
When you buy another currency do you want a weak or strong currency?
strong
When one currency is getting stronger and other goes weak in forex which one you have to buy or sell?
In order to make profit you should buy the currency that is getting stronger and sell the currency that is getting weaker.
What is a weak dollar?
A weak dollar is a U.S. dollar that can exchange for fewer amounts of foreign currency.
Why does Japanese currency have a weak exchange rate?
The Japanese currency has a weak exchange when compared to the major external currencies due to the difference in their trade balance and poor internal economic factors
What is meant by a Strong Currency?
It means, when it is weak we buy les from other countries than we were used to, strong currency is visa vesa
What were the weaknesses of the Articles?
Shay's rebelillion inflation Tariff wars weak government canat collect taxes quarriling and no money
How are the inflation and unemployment related in short run?
In the short run, there is a negative correlation between the changes in wages (normally growth rate) and the rate of unemployment. Changes in wages imply changes of inflation. This relationship is known as Phillips' Curve, in honour of William Phillips, who discovered it in 1958.Thus, the bigger the rate of inflation, the lower the unemployment. This appealing consequence made politicians think that they could get the level of employment they want just by creating more inflation.Eventually this was not true, and studies after these years showed that this correlation fell apart, and there were combinations of high unemployment and inflation.Why was that? The answer is expectations. If individuals know that governments (or central banks) will follow a weak monetary policy (increasing the circulation of money in the economy and therefore generating inflation) they will expect the rate of inflation to be high. Trade unions will endeavour to get rises in wages, and this will impede companies to hire more workers. Thus if the monetary authority increase inflation now, it would not get reduction of unemployment.
When was You Make Me Weak created?
You Make Me Weak was created on 2004-10-18.
What do boys in high school musicals do that they wouldn't ordinarily do off stage?
Sing Dance Wear Tights Weak Make up
What does it mean when a country's currency is worth more than a dollar?
Our dollar is weaker than their moneythe dollar is weak
