That is, what is the meaning of the positive correlation between high growth and high inflation, and what is the real impact of the current inflation on China's economy. The objective of this paper is to explore the impact of inflation on Chinese economy with particular reference to economic...
As the price rises, the currency loses its value. Generally, the monetary authority of a country takes steps to curb inflation. Because for running the economy smoothly, the authority must keep within it within limits. Moreover, the authority also keeps a close watch on the economy to identif...
Inflation affects consumers most directly, but businesses can also feel the impact: Consumers lose purchasing power when the prices of items they buy, such as food, utilities, and gasoline, increase. This can lead to household belt-tightening and growingpessimism about the economy. ...
3. Consequences of inflation on economy Inflation in the economy refers to a quantitative measure of the rate at which the purchasing power of goods and services decreases over time [25]. Within the economy, inflation shows an upward trend in prices, where it is essential to measure the incre...
Inflation’s effect on savings is subtle yet significant. Imagine stashing $1,000 in a savings account that earns a modest interest rate of 2%. Over the course of a year with an inflation rate of 3%, your savings will grow to $1,020. However, due to the rising cost of goods and se...
The impact of inflation on the broader economy has driven up input costs in healthcare significantly. Moreover, the likelihood of continued labor shortages in healthcare—even as demand for services continues to rise—means that higher inflation could persist. Our ...
The inflation targeting (IT) regime has been adopted by several countries around the world. Despite the growing empirical literature, it is not clear whether developing and emerging countries can improve economic performance by adopting IT. We investigate how far macroeconomic policies anchored on IT ...
Learn more about the impact of COVID-19 on the global economy, the shifts in stock markets, and the response of the major industries.
What is the impact of the inflation rate on the GDP growth rate? What happens to inflation and unemployment during the business cycle? What effect will higher than average economic growth have on inflation? How does inflation affect the economy's level of real output in regards to business cyc...
inflation rate soared to 9.1% in June—the highest it’s been since 1981—and will likely stay near the 9% mark for the rest of 2022. So, it’s very likely that sustained inflation and its far-reaching effects will continue to impact the economy for the foreseeable future. Some good ...