Social Sciences and the Law

Does inflation help the economy?

Link to this answer

CloseClose

Link to this answer

Share this credible answer with others. Simply paste this code into your blog or Web page:

<a href="http://qanda.encyclopedia.com/question/does-inflation-help-economy-90311.html" >Does inflation help the economy?</a>
E-mail this answer Link to this answer

Inflation stimulates business and helps wages to rise, but the increase in wages usually fails to match the increase in prices; hence, real wages diminish.

Answer verified with
Get more facts and information about inflation . Or, view the full encyclopedia entry from The Columbia Encyclopedia, Sixth Edition.

Similar questions: Does inflation help increase wages? How does inflation affect real wages? What are the effects of inflation on business? [ Hide these questions ]

Related research questions

Related research articles

Cairo to maintain growth 'at any cost': Finance Ministry vows to keep GDP...
Magazine article from: MEED Middle East Economic Digest ...despite soaring inflation. According to...government will help to reduce the budget...This spike in inflation is not a lasting...happened, but it does not mean we are...ambition and it does not mean that we...meed.com/economy
Controlling Inflation in Transition Economies: The Relevance of Central Bank...
Magazine article from: Atlantic Economic Journal ...WAGNER [*] Controlling inflation is a central problem...central bank independence helps in this task. The...problem in transition economies (Aslund et al...it in Western market economies [Kibmer and Wagner...independence to transition economies, however, is open...bank in a transition ...
Why not worry about inflation. (On the Economy) (Column)
Magazine article from: U.S. News & World Report ...of the U.S. economy, surely it is the...economy and let inflation get out of hand...to act. Higher inflation has typically followed...Fed's standard inflation-fighting response...pressures. So how does the Fed see things...rising wages that help to drive up prices...
Return of the Dread-I?(possible effect of inflation on U.S. economy)
Magazine article from: The Economist (US) ...surprise, ``core'' inflation, which excludes...pressure. America's economy, they argue, has...profitability. That does not, he cautioned...new era'', nor does it mean that higher...for ever, but it does suggest that more...rate, it may also help to explain the unusual...
Tax cut would fuel economy, not inflation
Newspaper article from: Chicago Sun-Times ...United States economy - or a disaster...would result in: Inflation, because people...credit to fight inflation. A business...the issue of inflation. Here's the...the government does. . And more jobs could help solve our welfare...
See all results at HighBeam

HighBeam gives you access to newspaper, magazine, and trade journal articles plus press releases, facts, information, and biographies from thousands of sources.