How does a low rate of inflation affect the economy?

Let’s learn how does a low rate of inflation affect the economy. The most accurate or helpful solution is served by Quora.

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What is an inflation rate? What effect does it have on the economy of a country?

What causes the inflation to go high or low?  What will happen if the inflation rate becomes zero or negative?

Answer:

[Edit:  while I was writing this, Lucas Karl Hahn posted a very good answer to the same question.  I...

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Draper Kauffman at Quora Mark as irrelevant Undo

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Answer:

It is generally the other way round i.e. inflation causes trade deficit. Inflation results in higher...

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Aditya Choppa at Quora Mark as irrelevant Undo

How does negative economic data and worries about inflation affect long term bond yields?

Im asking this question in order to learn how to try and better predict were 30 year fixed interest rates are going on a day to day basis and also on the long term basis. I understand that they are most closely tied to long term bond yields, and that...

Answer:

Long term can change based on a large variety of factors. Short term rates can be the most predictable...

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hifeemik... at Yahoo! Answers Mark as irrelevant Undo

Is it possible to have low unemployment while in an economy have a low rate of inflation?

According to Phillips Curve, this has a inverse relationship between unemployment rate and rate of inflation, simply, the lower the unemployment in an economy, the higher the rate of inflation in that economy. is there any possible to have an economy...

Answer:

It is possible, and it was achieved during the Clinton Administration. UK also acheived this as well...

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comrades... at Yahoo! Answers Mark as irrelevant Undo

Despite a consumer based economy, why inflation rate in US is so low? Despite savings based economy why the inflation rate in India is so high?

What are the pros and cons of both consumer and savings based economy ? And finally if you have to pick one for a developing country like India which one it would be , why ?

Answer:

US & India cannot be compared because Dollar is a reserve currency and Rupee isn't. Because of this...

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Priyank Patil at Quora Mark as irrelevant Undo

How does a country's exchange rate affect it's economy?

I want to know how the exchange rate affect the economy of a country. 1) How does the exchange rates affect the economy of a country? 2) Why is it important? 3) If the price of a dollar rises against the local currency, what does that mean and how does...

Answer:

1.. When the Euro was higher than the dollar then the price of US goods was cheap and exports increased...

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waterbal... at Yahoo! Answers Mark as irrelevant Undo

How does inflation affect the exchange rate?

My textbook says, "When our inflation rate is rising at a faster rate relative to our trading partners it can harm exporters and benefit importers." Which implies that inflation leads to appreciation - but I have read that inflation leads to...

Answer:

Inflation can lead to appreciation. Whether inflation leads to appreciation or depreciation depends...

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Nick Wu at Quora Mark as irrelevant Undo

What Is Inflation-And How Does It Affect Our Economy?

Today 16 Jan 07 the Government put up our inflation rate to a eleven year high. What is inflation? (I know it effects our everyday purchases) What is the purpose of inflation? Thank you

Answer:

If you have ten pounds and kept it under your mattress for a year you will find out that you can buy...

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davie at Yahoo! Answers Mark as irrelevant Undo

Am I wrong? Interest rate increases tend to be the result of a good economy to fend off inflation?

It seems like when investors hear that interest rates are going to rise, they will have less money to buy stocks so they pull out of stocks. And also they pull out of stocks when the economy is bad and the stock market could crash. But we only have really...

Answer:

It's far too complicated to go into everything in yahoo answers, but one of the reasons the federal...

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Ian L at Yahoo! Answers Mark as irrelevant Undo

If inflation rate increases in what ways it will affect an engineering consultancy firm?

inflation rate on Nov. 2010 was 3.7% but now on Nov. 2011 it was 4.8%. I just want to know if this inflation rate will be good for a company or it will serve as a threat.

Answer:

It depends on 1. if it is anticipated or unanticipated inflation. 2. if the company has an inflation...

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thai_lei... at Yahoo! Answers Mark as irrelevant Undo

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