[인문어학]Inflation and its affects

소개글

Economics realted Term paper

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Introduction:
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Works Cited

본문내용

High inflation rates are always disruptive to a country’s overall health because, our prices are rising more quickly than those of our competitors abroad, then we will rapidly become uncompetitive and our exports will fall. Inflation also causes problems domestically as wages try to keep up and those on fixed incomes suffer. Peoples savings will also fall in value. So the consensus among economists is that inflation should remain low. Inflation influences government policy in areas of economic growth, price stability, employment, and tracking of incoming and outgoing monies through the balance of payments. Some countries, such as Canada, try to aim for zero inflation. The arguments are not clear as to the real benefits and validity of this goal. According to Akerlof, Dickens and Perry estimates of the benefits of zero inflation are certainly less than the unemployment costs of zero inflation in the short-run. A low, steady rate of inflation is a reasonable target for the Fed. We cannot say precisely what low rate of inflation best serves the American people, but we are confident it is not zero. To be sure, the goal of any government should be to follow that of the United States and maintain a moderate, steady rate of inflation.

참고 자료

Heakal, Reem. “What Is The Balance Of Payments?”
Investopedia.com. 22 March2006
<http://www.investopedia.com/articles/03/060403.asp>
“South-Western: Zero Inflation Policy.” 22 March 2006.
<http://www.swlearning.com/economics/policy_debates/inflation.html>