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How did the great inflation end?

The Great Inflation, which peaked in the late 1970s and early 1980s in the United States, ended primarily due to the aggressive monetary policies implemented by Federal Reserve Chairman Paul Volcker. By significantly raising interest rates, the Fed aimed to curb inflation, which had reached over 13%. This approach led to a recession in the early 1980s but ultimately succeeded in stabilizing prices and restoring confidence in the economy. The combination of tight monetary policy and structural changes in the economy helped to bring inflation under control.


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 to bring industries under state control?

Nationalize


How Inflation Can Destroy Shareholder Value?

Periods of High Inflation usually bring higher interest rates, and pressure to raise wages, and varying distortions to product input prices. They also make it more difficult to price one's own products. Companies that have trouble managing interest rates or those that hold high levels of output inventory would have difficulties in a higher inflation environment. Those that manage these aspects well should not have those issues. RichmondRob


What is the Impact of inflation in return on investment?

Calculating the return on investment you actually want to know whether the investment will give you positive value in the end. You wouldn't want to waste your money, right? Thus you want to make sure that the net present value of your investment is positive. However, inflation deteriorates the value of money. 100 money today most likely can buy you more today than in a year's time. That's why you are interested in adjusting the expected future cashflows to the expected inflation rate. Overall, not accounting for inflation will overestimate the value of investment. In other words, you could choose something which will not bring you benefit.

Related Questions

inflation?

rising prices


How many days did it take to bring the fire under control?

It took 17 days to bring the fire under control.


Why did roman coins decrease value?

from inflation when the emperors needed to bring down the value of money when they needed more money


What is the definition of subdue?

Bring under control


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.


To bring industries under state control?

confederation


What is to bring industries under state control?

Nationalize


How many countries did Hitler bring under his control?

22


How did akbar bring or kept what area under mogul control?

No


What start with sub meaning bring under control?

subdue


What starting with sub means to bring under control?

subdue


What emperor in Ancient China used war to bring parts of Vietnam and Korea under China's control?

Wudi was the emperor who used war to bring Vietnam and Korea under Chinas control.