A Study on Inflation

Remesh Vp
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引用次数: 1

Abstract

The report entitled –“A Study on Inflation” elucidates inflation (or less frequently, price inflation) which is a general rise in the price level in an economy over a period of time.
When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money– a loss of real value in the medium of exchange and unit of account within the economy. The opposite of inflation is deflation, a sustained decrease in the general price level of goods and services. The common measure of inflation is the inflation rate, the annualized percentage change in a general price index, usually the consumer price index, over time.

Economists believe that very high rates of inflation and hyperinflation are harmful, and are caused by an excessive growth of the money supply. Views on which factors determine low to moderate rates of inflation are more varied. Low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities. However, the consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth.

Inflation affects economies in various positive and negative ways. The negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future. Positive effects include reducing unemployment due to nominal wage rigidity, allowing the central bank greater freedom in carrying out monetary policy, encouraging loans and investment instead of money hoarding, and avoiding the inefficiencies associated with deflation.

Today, most economists favor a low and steady rate of inflation.Low (as opposed to zero or negative) inflation reduces the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduces the risk that a liquidity trap prevents monetary policy from stabilizing the economy. The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Generally, these monetary authorities are the central banks that control monetary policy through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements.
通货膨胀研究
这份题为“通货膨胀研究”的报告解释了通货膨胀(或者不太常见的价格通胀),它是一个经济体在一段时间内价格水平的普遍上升。当总价格水平上升时,每单位货币购买的商品和服务减少;因此,通货膨胀反映了单位货币购买力的下降- -经济中交换媒介和计算单位的实际价值的损失。与通货膨胀相对的是通货紧缩,即商品和服务的总价格水平持续下降。衡量通货膨胀的常用指标是通货膨胀率,即一般价格指数(通常是消费者价格指数)随时间的年化百分比变化。经济学家认为,过高的通货膨胀率和恶性通货膨胀是有害的,是由货币供应过度增长造成的。对于哪些因素决定了低到中等的通货膨胀率,人们的看法更加不同。低或中等通货膨胀可归因于对商品和服务的实际需求的波动,或可用供应的变化,例如在短缺期间。然而,普遍的观点是,长期持续的通货膨胀是由货币供应增长速度快于经济增长速度造成的。通货膨胀以各种积极和消极的方式影响经济。通货膨胀的负面影响包括持有货币的机会成本增加,未来通货膨胀的不确定性可能会阻碍投资和储蓄,如果通货膨胀足够快,由于担心未来价格会上涨,消费者开始囤积商品,导致商品短缺。积极影响包括减少因名义工资刚性导致的失业率,允许央行在执行货币政策方面有更大的自由,鼓励贷款和投资,而不是囤积货币,避免与通货紧缩相关的低效率。今天,大多数经济学家倾向于低而稳定的通货膨胀率。低(相对于零或负)通货膨胀通过使劳动力市场在经济衰退中更快地调整,降低了经济衰退的严重程度,并降低了流动性陷阱阻碍货币政策稳定经济的风险。保持通货膨胀率低而稳定的任务通常交给货币当局。一般来说,这些货币当局是通过设定利率、公开市场操作和设定银行准备金要求来控制货币政策的中央银行。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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