1. I would like to tell you about inflation: inflation is a steady rise in the average price and wage level.

Inflation 2

1. I would like to tell you about inflation: inflation is a steady rise in the average price and wage level.

2. Periods when inflation rates are very large is hyperinflation.

3. The causes of inflation are rather complicated. There is a number of theories explaining them.

4. For example, monetarists say that inflation is caused by too rapid increase in money supply and the corresponding excess demand for goods.

5. On the other hand, Keynesians suppose that inflation is caused by processes occurring in money circulation.

6. They say that low inflation and unemployment rates can be ensured by adopting a tight incomes policy.

7. The longer inflation continues, the more the economy learns to live with it.

8. Indexation is a means to reduce the costs of some inflation effects. Indexed wages or loans mean that the amount to be paid or repaid will rise with the price level.

9. The more countries adjust their economies to cope with inflation, the closer they come to hyperinflation.

10. Indexation means that high rates of inflation are much more likely to continue and even to increase. That is all.

Дата добавления: 2015-11-04