A Note on the Competing Causes of High Inflation in Bulgaria during the 1990s: Money Supply or Exchange Rate?No abstract is available for this item.Sébastien CharlesJonathan MarieHALPost-Print
Understanding inflation: causes, effects, and economic significance Citing higher purchase prices, the maker of Toblerone shrank its distinctive triangular chocolate bars in the UK market in 2016 © Rob Welham/Camera Press/laif Put simply, inflation is an increase in the prices of g...
Inflation is an economic concept that represents an increase in the prices of goods over time, reducing purchasing power and affecting individuals, businesses, and governments. For instance, a cup of coffee costs $2.00 in 2020, but in 2023, it costs $2.50. This increase in the price of coff...
Examples of Global Recession #1 Russo-Ukraine War The Russo-Ukraine war has led the leading economies worldwide to slide into an energy crisis. It has resulted in high inflation rates too. It is projected that Italy, Germany and the UK’s dependency on costly fuel will plunge them into a ...
On the one hand, the results indicate that real natural gas price shocks and electricity-specific shocks increase the Consumer Price Index (CPI) inflation in the UK. The inflation pass-through of electricity-specific shocks is much greater than other electricity price shocks. On the other hand,...
Caprio and Klingebiel (1997) find that excessive credit growth is an important determinant of banking crises across countries. In a comprehensive cross-country study with a multinomial logit model, Demirgüç-Kunt and Detragiache (1998) document that weak economic growth, high inflation and real ...
Is the U.S. in a Liquidity Trap Now? As of 2024, the U.S. economy is experiencing inflation and high interest rates. These may pose problems but not the kinds that can lead to a liquidity trap. By definition, a liquidity trap exists only during a period of very low interest rates....
Central banks of developed economies, including theFederal Reservein the U.S., monitor inflation. Ifinflationoccurs too rapidly, it can push prices for basic necessities out of reach. Inflation also erodes consumer purchasing power, devalues currency, and can interfere with the ability to save. K...
The Federal Reserve generally strives to maintain what it calls ahealthy inflation rateof around 2% over the long term.2Hyperinflation is an extreme case of inflation. Inflation higher than 5% is considered high inflation. Inflation of 50% or more per month is considered hyperinflation.3 ...
risk. For example, a 10-year bond usually yields more than a 2-year bond, as the investor is taking a risk that futureinflationor higher interest rates could lower the bond's value before it can be redeemed. So, in this case, the yield goes up over time, creating an upward yield ...