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inflation is both good and bad.. however, if compare with deflation, inflation is less evil.
why?? consider these..
-deflation decrease the national income of the community and pauperize society as a whole.
-deflation increase the level of unemployment.
-it is easier to control inflation but hard to recover from deflation.
-mild inflation may stimulate economic growth.
Wiki User
∙ 14y ago
Wiki User
∙ 15y agobecause it means the price for goods and services are going up and more money has to be printed in circulation to keep up with demand, oif there is more money sloshi9ng around the economy then there is more money to lend to buisness' and people to buy houses (responsibly...sub prime..ahem!) so growth happens more jobs are created and things get done generally. There is a flip side however (like everything...do it in moderation) and inflation is no exception! too high inflation devalues the currency, and means prices keep getting higher and higer, even changing drasticaslly from morning until noon! Argentina was a classic example of hyper inflation, and Russia too (both in the past by the way)
Wiki User
∙ 12y agoIt feels good, like sex!
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What are the links between inflation and the economy?
on increasing inflation economy growth decreases
What is Zero inflation and Mild inflation?
Zero inflation is where the economy reach a state of 0% inflation rate. This is not really good in the sense that it shows the economy is stagnant/not growing. This may turn away the investors. Mild inflation is basically low rate of inflation around 2% to 3%. Mild inflation shows that an economy is stable and indicates economic growth.
Is inflation harmful?
Too much inflation will ruin the economy but small levels of inflation will spur growth. Inflation is very harmful to any economy because it can ruin the economy's development and growth and this is not suppose to be. Inflation is also very harmful to any economy because the people living in that economy might not survive the situation and this is when you see that an economy is affected and if nothing is done to it, it can cause an economy to collapse.
How do monetary policy control inflation?
Monetary policy can have an impact of inflation. The ideal state of the economy is a balance between inflation and unemployment at 4.3% which is only seen in a wartime economy.
In the absence of unexpected shocks does the economy tend to experience inflation or deflation?
inflation
What are the links between inflation and the economy?
on increasing inflation economy growth decreases
What is Zero inflation and Mild inflation?
Zero inflation is where the economy reach a state of 0% inflation rate. This is not really good in the sense that it shows the economy is stagnant/not growing. This may turn away the investors. Mild inflation is basically low rate of inflation around 2% to 3%. Mild inflation shows that an economy is stable and indicates economic growth.
Is inflation harmful?
Too much inflation will ruin the economy but small levels of inflation will spur growth. Inflation is very harmful to any economy because it can ruin the economy's development and growth and this is not suppose to be. Inflation is also very harmful to any economy because the people living in that economy might not survive the situation and this is when you see that an economy is affected and if nothing is done to it, it can cause an economy to collapse.
How do monetary policy control inflation?
Monetary policy can have an impact of inflation. The ideal state of the economy is a balance between inflation and unemployment at 4.3% which is only seen in a wartime economy.
In the absence of unexpected shocks does the economy tend to experience inflation or deflation?
inflation
Economic term for an economy with rising inflation and unemployment?
This is called inflation or more precisely "price inflation".
The idea that too much money in the economy causes inflation?
quantity theory: Theory that too much money in the economy causes inflation.
Can you give a sentence for the word inflation?
Inflation of goods and services occurs when the economy grows.
Why did the us economy collaspe in 1929?
inflation
When oil and energy prices rise the economy tends to experience what type of inflation?
natural inflation
Price stability is concerned with?
Price stability is concerned with inflation. This is due to the fact that inflation dictates the economy. The greater the stability in pricing equates to a stable economy.
What money supply growth exceeds the growth of the overall economy what is the result?
Inflation
