Help!! Inflation question?

Question

Doing my histoyr question here. Here is the question. How does inflation affect a country's economy??

Answer 1

In mainstream economics, inflation is a rise in the general level of prices, as measured against some baseline of purchasing power. The prevailing view in mainstream economics is that inflation is caused by the interaction of the supply of money with output and interest rates. In general, mainstream economists divide into two camps: those who believe that monetary effects dominate all others in setting the rate of inflation, or broadly speaking, monetarists, and those who believe that the interaction of money, interest and output dominate over other effects, or broadly speaking Keynesians. Related terms include deflation which is a falling general level of prices, disinflation which is the reduction of the rate of inflation, hyper-inflation which is an out of control inflationary spiral and reflation which is an attempt to raise prices to counter act deflationary pressures.

Answer 2

First we would desire to understand inflation. there are a number of distinctive definitions and theories of suggestions from the international of economists on what inflation ability. despite the fact that the guy on the line is familiar with that extremely there is too lots distant places money floating around interior the gadget inflicting a devaluation of the dollar and maximum efficient to better fees. regrettably unions usually circumstances combat for better wages using fact of increasing fees despite the fact that this purely added will boost inflation using fact fees proceed to upward push. the main substantial component the government can do to cut back inflation is to decrease the supply of money interior the gadget. The attitude will incorporate: cost regulation - regulating fees so as that they fall interior a band the place the business enterprise vendors ought to nonetheless make a income yet yet no longer take great thing relating to the placement policies on commercial financial lending establishments - boost the project for finding out to purchase a loan via increasing the fees of interest and insisting on better securities for loans. Making it greater good to get a loan helps to decrease the flow of money interior the gadget Incentives for saving - Monies in fixed deposits are monies that now no longer freely flow interior the gadget and could tutor constructive to the top clientele particularly as quickly as the financial gadget stabilizes as quickly as greater. those are extremely some the strategies the government might use to convey back the financial gadget and there are some greater state-of-the-artwork recommendations as referenced via extremely some the different answerers. despite the fact that those curiously easy recommendations however very useful require a great deal of cooperation between the government and the corporate international for the greater useful good of no longer purely the undesirable guy however the rustic on an entire.

Answer 3

dont know