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Why is a constant inflation rate less harmful to an economy than a rate that fluctuates a lot?

Because it provides stability and it is easier to predict. This makes it easier for business to plan (especially banks) what they will do in the future. Uncertainty is sometimes just as bad as a shrinking economy.


What is the relationship between current account deficit and inflation management in India?

The larger the deficit the more inflation there will be. The government will print more money in the hopes of being able to get out of the deficit easier.


How is inflation helpful for the economy?

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.


Who gets hurt the most by inflation?

Almost everyone. It would be easier to list those who would not be hurt. Certain investors and stocks/shares speculators would not be hurt as far as their investment goes but they would be adversely affected in other areas. Inflation (very simply put) means that the monetary value of something increases. If it is prices then people have to pay more. If it is wages then the employers have to charge more for their goods or services. In theory, if there were no inflation of any type, then the entire economy would remain stable. However this is not possible in a practical world. Because countries trade with each other, we all want to earn more etc then inflation will occur somewhere which in turn will affect (hurt) almost evryone to some extent.


What did Charlemagne do for the economy of Europeans?

Charlemagne reintroduce coinage based on the old Roman denarius, and saw to it that there was no inflation. The denier he introduced was the basis for the English penny and a number of other coins used in Europe during the Middle Ages. This made trade easier and strengthened commerce.

Related Questions

Why is a constant inflation rate less harmful to an economy than a rate that fluctuates a lot?

Because it provides stability and it is easier to predict. This makes it easier for business to plan (especially banks) what they will do in the future. Uncertainty is sometimes just as bad as a shrinking economy.


What is the relationship between current account deficit and inflation management in India?

The larger the deficit the more inflation there will be. The government will print more money in the hopes of being able to get out of the deficit easier.


If you could predict the future do you think life would be easier?

in my opinion ,predict the life countunously it must be easyer to make our life to organize all things that we appricate to be our seystem of life easy


What are the best features to look for in a compact bike pump for easy portability and efficient inflation?

When looking for a compact bike pump for easy portability and efficient inflation, consider features like a lightweight and durable construction, a flexible hose for easier pumping, a secure valve connection, and a pressure gauge for accurate inflation.


Is a hurricane easier to predict than a tornado?

Yes. Hurricanes are easier to predict as they are easier to detetec and take longer to develop. Tornadoes are small-scale events that can form in minutes. Making it difficult to to make measurements of make an accurate prediction. Hurricanes are large-scale weather systems that develop over the course of several days. This gives meteorlogits more options in analyzing the, and enough time to run forecast models.


Is steel an isotropic material?

Yes...Isotropyis uniformity in all orientations. This means having identical values of a property in all directions. Isotropic materials are useful since they are easier to shape, and their behavior is easier to predict.


Why is it easier to predict where an earthquake epicenter will occur than it is to predict when it will occur?

I think you mean when. Earthquakes are made by two plates in the ground moving against each other. Its it to predict where because if you are near a plate boundaries (where two plates meet) then it is more likely for an earthquake to occur.


What happened in the last decade for school homework?

In the last decade, home computers have pretty much become universal tools for school children. Almost every family can afford one, so it's easier for kids nowadays to look up information and do their work.


What is based on reasoning from what you already know?

this is very true you collect all the information you know, put it all together and that makes it easier to predict something.


A prediction is based on reasoning from what you already know?

this is very true you collect all the information you know, put it all together and that makes it easier to predict something.


What do weather stations do to make weather information easier to understand?

They collect data and information to be interpreted by meteorologists to more accurately predict future weather patterns.


What is the purpose of a presta to schrader adapter and how does it facilitate the inflation of tires with different valve types?

A presta to schrader adapter allows you to inflate tires with different valve types. The purpose of the adapter is to convert a presta valve to a schrader valve, making it easier to use standard air pumps or compressors. This facilitates the inflation of tires with different valve types by providing a simple and convenient way to connect the two different valve types for inflation.