0
Why is inflation a constant concern of the Federal Reserve Board?
Wiki User
∙ 7y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
How does inflation affect GDP?
Inflation is the primary and negative factor of all economic troubles including GDP,because it lowers consumerism, promote unemployment, and reduce import and export.-- Not quite. Inflation itself isn't necessarily a bad thing, and in fact deflation (negative price growth) can adversely affect the economy is well. High inflation can certainly hurt spending and employment, but inflation is just a term used for the growth rate of prices, which happens naturally as economies expand. The US Federal Reserve targets an inflation rate of 2-3% as a goal. Inflation has historically been a major concern in some of the developing world especially, and source of economic (and political) instability. (Source: Economics PhD student who just finished grading a paper that cited the above answer)
Who prepares the monetary policy?
The central bank (United States Federal Reserve in the US) is responsible for monetary policy. Fiscal policy on the other hand is managed by the government (United States Department of the Treasury in the US)
What are economics concern with?
The economy - increase and stabilization of growth -keeping inflation under control -adjusting interest rates to enable consumers to borrow and spend A+LS: how well resources are used by a society
What are the effect of a rising GDP?
Rising GDP (Gross Domestic Product) creates an increase in the money supply. However the stock market needs an increase in GDP to make profits, and to much GDP causes higher inflation which is a big concern in China. The easy way to define inflation is, if inflation increases by 8% and your pay check only increases by 4% in that same year, your money is now worth 4% less than the previous year.
What are the advantages of globalization of fashion?
wider choices for consumers more money in developing countries prices kept low-inflation is less likely to occur no country is single power-head communication between countries rise cultural understanding international financial concern
When was Our Constant Concern created?
Our Constant Concern was created on 2002-01-22.
A major foreign concern for the Nixon administration?
inflation
What was the solution to the anti-federalist' concern?
The anti-federalists were concerned that the federal government would have too much power over the states. The solution was to give the federal government some specific powers and to reserve the rest of the powers to the states.
How does inflation affect GDP?
Inflation is the primary and negative factor of all economic troubles including GDP,because it lowers consumerism, promote unemployment, and reduce import and export.-- Not quite. Inflation itself isn't necessarily a bad thing, and in fact deflation (negative price growth) can adversely affect the economy is well. High inflation can certainly hurt spending and employment, but inflation is just a term used for the growth rate of prices, which happens naturally as economies expand. The US Federal Reserve targets an inflation rate of 2-3% as a goal. Inflation has historically been a major concern in some of the developing world especially, and source of economic (and political) instability. (Source: Economics PhD student who just finished grading a paper that cited the above answer)
What is the Board of Governors' main concern?
In conjunction with the FOMC and the twelve Reserve Banks, the Board of Governors' main concern is the development of monetary policy.
When would the Fed use a tight money policy?
When looking to decrease inflation, and the real GDP level is above full employment.
Who prepares the monetary policy?
The central bank (United States Federal Reserve in the US) is responsible for monetary policy. Fiscal policy on the other hand is managed by the government (United States Department of the Treasury in the US)
Should China’s growing involvement in South America be a cause of concern for the United States?
For involvement of another country is always a federal concern
What was behind the red scare?
Concern that federal workers were not loyal to the United States
What' was a cause of the red scare?
Concern that federal employees were disloyal to the United States
What was the cause of the red scare?
Concern that federal employees were not loyal to the United States!
What was a cause of red scare?
Concern that federal employees were disloyal to the United States
