Inflation is the solution for economic troubles???????????????????????
This is a long and interesting article about the benefit of inflating our way out of the trouble.
The issue is important as the cornerstone of monetary policy in the last 20 years was a low and stable rate of inflation.
I would like to talk about it for a few lectures.
Here is the first fragment to discuss.
"Rising prices help companies increase profits;"
Correct or not?
"Rising wages help
borrowers repay debts."
Correct or not?
" Inflation also encourages people and businesses
to borrow money and spend it more quickly. "
"The school board in Anchorage, Alaska, for example, is counting on inflation to keep a lid on teachers’ wages. Retailers including Costco and Walmart are hoping for higher inflation to increase profits. The federal government expects inflation to ease the burden of its debts."
Are they right?
Answers will come after we talk about it. It will be an excellent review of a few topics from the course.
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