economic costs of anticipated and unanticipated inflation
2007-02-23 00:05:36 · 5 answers · asked by Patricia N 1 in Social Science ➔ Economics
anticipated = predicted. Unanticipated = you didn't expect it.
Right now we are anticipating very low inflation rates. Interest rates are low.
In the late 1970's (and early 1980's) we had inflation rates approaching 20% at times. Interest rates skyrocketed.
The people who did not anticipate the extreme inflation of the 1970's got caught with long term investments at low interest rates. Essentially they lost money even though the numerical ballance of the accunt increased.
Those who anticipated the high inflation were able to invest appropriately and not get hurt as badly.
Germany pre-WWII had inflation rates so high that people would get paid for a day's work and by the time they could RUN to the store the prices had gone up to where they couldn't afford to buy food.
Unanticipated inflation can "snowball" and can be devastating to the economy.
2007-02-23 00:13:37 · answer #1 · answered by Anonymous · 1⤊ 1⤋
Anticipated Inflation Definition
2017-01-01 11:18:13 · answer #2 · answered by ? 4 · 0⤊ 0⤋
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What is the difference between Anticipated and Un anticipated Inflation?
economic costs of anticipated and unanticipated inflation
2015-08-13 09:59:42 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Unanticipated Inflation Definition
2016-11-06 21:29:32 · answer #4 · answered by ? 4 · 0⤊ 0⤋
anticipated inflation means that they expect the inflation to go up or down
un anticipated inflation means that no one expected this to happen
2007-02-23 00:16:47 · answer #5 · answered by lidakamo 4 · 2⤊ 0⤋
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ANTICIPATE MEANS YOU ARE READY FOR A CERTEAN EVENT TO OCCOUR. PREDICTING SOMTHING SIMPLY MEANS YOU SEE SOMTHING BEFORE OT HAPPENS
2016-04-06 03:04:21 · answer #6 · answered by Anonymous · 0⤊ 0⤋