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...
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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 ...
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 ...
In theory, lower deficits can reduce inflation. That's because reduced government spending or higher taxes, both of which help shrink the deficit, drive down demand in the economy, thereby easing pressure on companies to raise prices. Jason Furman, a Harvard economist who served as a ...
Inflation and interest rate increases are occasionally required for the stability and sustained growth of the domestic economy. However, it is still uncertain how the Fed rate hike would affect the US and global economies in the long run. ...