Why is a high rate of inflation bad for the economy?

Answer When the average price of all goods and services an economy provides, rises over a period of time it's called inflation. Inflation and an economy mesh together, and a change in one will impact the ... Read More »

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What is the relation of inflation and Interest rate in the economy?

This based on the Australian economic system.Inflation is the change in the general level of retail prices as measured by the Consumer Price Index (CPI). Inflation is measured as a percentage based... Read More »

Why Is a High Rate of Inflation Undesirable?

High inflation, or rapidly rising general prices, causes numerous problems and is often a symptom of serious structural problems in the economy. Low-income citizens are often hit the hardest by a h... Read More »

Inflation Rate Vs. Growth Rate?

Inflation rate and growth rate, as economic terms, might sometimes get confused as meaning the very same thing. However, defining each term separately helps us to recognize the main differences bet... Read More »

What is the inflation rate in the USA?

The inflation rate in the United States, as measured by the Consumer Price Index (CPI), declined by 0.2 percent on a seasonally adjusted basis in May 2010. The CPI Index increased by two percent be... Read More »