answersLogoWhite

0

Economic inflation or just inflation is the rate at which the general level of prices for goods and services is rising. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum.

Inflation or deflation will always occur in a economy but the role of the Fed is to make less severe.

User Avatar

Wiki User

13y ago

What else can I help you with?

Related Questions

Which economic term describes a period of slow economic growth that also has inflation?

Recession


What economic term refers to a general rise in prices?

apajedico


Economic term for an economy with rising inflation and unemployment?

This is called inflation or more precisely "price inflation".


Is inflation an economic issue?

Yes, it's hardly an economic issue


How do research papers on the impact of inflation affect economic growth?

Research papers on the impact of inflation can influence economic growth by providing insights into how inflation rates affect various aspects of the economy, such as consumer spending, investment decisions, and overall economic stability. Policymakers and businesses can use this information to make informed decisions that can help mitigate the negative effects of inflation on economic growth.


How does inflation change economic choices?

As inflation rises, the cost of items increases because the currency is not worth as much as it was before inflation. When prices rise, economic choices available to people become more limited.


What does economic environment mean?

This term considers the external factors in a situ; eg the employement, inflation, intrest rates... This is a basic summary for more info google "economic environment :definition" this should produce more answers TR :D


What was the serious German economic problem in 1920s?

Inflation


Effects of economic dualism?

It results into inflation in the country


What are not goals of federal economic policy?

Low inflation


What traditional methods solve economic problems?

Inflation


What is the difference between recession and inflation?

Recession is a period of economic decline characterized by a decrease in economic activity, while inflation is a general increase in prices of goods and services.