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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.
By 1994 the economy of Bulgaria was?
Very bad economy. Inflation rate was very high. Speculations were there. Pyramidal (forgery) structures were there too. Simple daily necessary commodities were unavailable. One can say- financial CHAOS!
How can interest rate help indicate the health of a countrys economy?
The risk of a nation is based on the interest rate...high rate bad health of country economy, low interest rate better situation
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 inflation and what can the government do about it?
Inflation is both good and bad for a couple of reasons. Inflation means the economy is growing strong and prices are going up. Too much inflation has a bad effect on people who are struggling to have their paychecks meet the growing prices
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.
What are the indicators if a bad economy?
1) High unemployment 2) Low national income 3) extremely high inflation 4) unstable exchange rate 5) persistent Balance of Payment deficit.
By 1994 the economy of Bulgaria was?
Very bad economy. Inflation rate was very high. Speculations were there. Pyramidal (forgery) structures were there too. Simple daily necessary commodities were unavailable. One can say- financial CHAOS!
How can interest rate help indicate the health of a countrys economy?
The risk of a nation is based on the interest rate...high rate bad health of country economy, low interest rate better situation
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.
Is near zero level inflation is bad?
Though a Zero inflation is practically very difficult to achieve, very low levels of inflation are actually bad for the economy. Inflation determines the increase in prices of goods and services in a country's economy year on year. A very low or zero inflation means a very low level of growth in prices for goods and services which in turn implies that the economic growth in the country is also very poor. In a growing or flourishing economy the prices of goods and services increase in a steady and consistent manner year on year. This means the country's economy is growing steadily. Inflation rates of around 5-6% are considered ideal for countries. A very low inflation is bad for the economy and at the same time a double digit inflation is also very bad for the economy.
What does a lower interest rate mean for savers?
It means that they are getting less money for deferring expenditure and saving instead. However, it is not the low nominal interest rates which matter but what the "real" interest rates are. This is the difference between the nominal interest rate and the rate of inflation. An interest rate of 2% when inflation is 0% is good news for savers but an inflation rate even as high as 10% is bad news if inflation is higher than 10%.
What is inflation and what can the government do about it?
Inflation is both good and bad for a couple of reasons. Inflation means the economy is growing strong and prices are going up. Too much inflation has a bad effect on people who are struggling to have their paychecks meet the growing prices
How could population have an impact on Pakistan economy?
due to increase in population there will be a bad effect in Pakistan as the growth rate will be high and due to this growth rate the demand of commidities will increase which results in inflation as well in poverty giving birth to so many problems eg corruptions, prostituitiion, child labour; ETc
What is Russia's economy like right now?
The economy rate is not good, it is really bad, bad bad lol bla
What was the reasons of decline in roman empire?
The decline Bad emperors Inflation with economy Mercenarie army Too big
Is inflation good or bad?
Inflation has always had an indisputable benefit for the governments playing this game, since few people understand what is happening until the policy has run amuck. Unfortunately, many of the most influential people in our society support a little inflation as a good thing. They argue that it keeps the nation out of depressions and sometimes provides a Robin Hood effectInflation has always had an indisputable benefit for the governments playing this game, since few people understand what is happening until the policy has run amuck. Unfortunately, many of the most influential people in our society support a little inflation as a good thing. They argue that it keeps the nation out of depressions and sometimes provides a Robin Hood effect
