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Who said inflation is always and everywhere a monetary phenomenon?
Wiki User
∙ 11y ago
Milton Friedman
Wiki User
∙ 11y ago
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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.
Large or persistent inflation is almost always caused by?
growth in the quantity of money.
It is always claimed by the commercial banks in the economy that their Net-Worth fall sharply when Central bank adopt the contraction monetary policy in the periods of high inflation in the economy?
plz give me this answer of the question bcoz today is last date of mjy gdb.so that plz answer send me till evening.okay plz guys
Policies used to combat inflation in south Africa?
Inflation is a rise in the level of prices measured against some baseline of purchasing power (a CPI or consumer price index). Inflation happens because of the interaction between the supply of money, production and interest rates. Some believe that fiscal policy effects (monetary adjustments) dominate all others in setting the rate of inflation. Others believe a combination of the interaction of money, interest and output dominate over other effects. Regarding unemployment you need to understand that unemployment occurs naturally in the labor market. There will always be a percentage of people that are unemployed, in between jobs (voluntarily or not), taking a break, milking the system, etc. Central Banks or other government institutions can and do affect inflation to a significant extent mainly through the setting of interest rates, this is known as using monetary policy. By rising interest rates and allow for a slow growth of the money supply a Central Banks can fight inflation in the short to medium term, thus using unemployment and the decline of production to prevent price increases.
What is the definition of economic inflation?
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.
When was friction first used?
friction is a natural phenomenon it is always being used.. always, every second of everyday there is friction in action everywhere even in the deep reaches of space. I mean literally EVERYWHERE and ALWAYS.
What are the 3 postulates of science?
1. Every phenomenon has a cause.2. Every cause can be known and understood.3. All causes and phenomena act the same always and everywhere.
When you just for inflation which is worth more?
Because inflation is the decrease in the value of a dollar over time, the "older" dollar is always worth more.
What is moving that causes lightning?
Electrons always in any electrical phenomenon.
What is one weather phenomenon which will always occur when flying across a front?
One weather phenomenon which will always occur when flying across a front is wind direction change. This turbulence can range from mild to extreme.
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.
Large or persistent inflation is almost always caused by?
growth in the quantity of money.
Was Seven Eleven always international?
yes it was! there everywhere
What is a universal law?
a principle that is in effect always and everywhere.
It is always claimed by the commercial banks in the economy that their Net-Worth fall sharply when Central bank adopt the contraction monetary policy in the periods of high inflation in the economy?
plz give me this answer of the question bcoz today is last date of mjy gdb.so that plz answer send me till evening.okay plz guys
Will unemployment increase or decrease?
Inflation is always increasing. The US is seeing very little inflation because the way the economy works, but nevertheless prices do rise (gas, milk, etc.). But these are always fluctuating anyway.
Was Gone With the Wind biggest selling movie?
Yes and considering inflation, it probably always will be.
