In the short run, government spending (as a percentage of GDP) appears to have a negative impact on inflation in China, while a positive impact in Indonesia and India. The implication is that governments of emerging economies should be prudent with their decisions on government spending....
The Impact of Government Expenditure on Inflation: Evidence from Sri Lanka and India Government investment policy has a significant impact on the economy, particularly on growth. In controlling the budget deficit, expenditure on capital investment contribute a very significant role.Nawalage S. Cooray....
How does the government control inflation? The most common way governments control inflation is by raising or lowering interest rates. Put simply, high interest rates counter inflation by reducing the money supply, and low interest rates promote inflation by increasing the money supply. In the U....
How does the government control inflation? The most common way governments control inflation is by raising or lowering interest rates. Put simply, high interest rates counter inflation by reducing the money supply, and low interest rates promote inflation by increasing the money supply. In the U....
s Corporate Risk Management Survey, compression of operating margins was4the biggest consequence of inflation in the past three years, while higher financing costs are expected to have the highest impact in the next three years. 58% of respondents consider higher inflation as the top macro concern...
This study examines the complex interactions between official development assistance (ODA) and the ecological environment of recipient countries, mainly focusing on agricultural economic development and renewable energy. Using dynamic threshold models an
Impact on Investments Investments are not immune to the effects of inflation either. Inflation can erode the real rate of return on investment. For example, if you invest in bonds that offer a fixed interest rate of 4% and the inflation rate is 3%, your real return would be only 1%. Thi...
My reading of the evidence is that government spending has a much larger impact on the economy than tax cuts for the wealthy. So the party of the president along with the party that controls Congress can have a large influence on the depth of the recession and the time it takes to recove...
How does the government control inflation? The most common way governments control inflation is by raising or lowering interest rates. Put simply, high interest rates counter inflation by reducing the money supply, and low interest rates promote inflation by increasing the money supply. In the U....
Keynes was of the opinion that the state should solve the problems in the short term and not wait for the solution to come from the markets. Keynesian theory was dominant after World War II until the 1970s. Then, its popularity declined as many countries began to face inflation and a ...