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effects of inflation? (1 Viewer)

pigyar

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What are the effects of inflation on the distribution of income, economic growth and external stability?
 

BackCountrySnow

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what are the effects of getting an online forum to do an esssay for you?
 

pigyar

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BackCountrySnow said:
what are the effects of getting an online forum to do an esssay for you?
i am not trying to be cheap and get ppl to an essay for me...i am just gathering good ideas to see if i am on the right track for my next school task.

my views are: negative for distrubution of income, bad for external stability, bad for eco growth if inflationis high, but good if it is low.

please comment
 

lionking1191

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JFK said:
Diztreebution of Incum: Inflayshun startz to mayk t3h incum act lyk a flutterby it juzt floatz around whereva it wantz 2 go and den one day it cocoonz itseld and it layter becomz high interrezt rates.

Ecognomeic Grofth: Inflayshun is very meanz 2 ecognoimic grofth becuz t3h high $$$ makes t3h wizardzz angry and t3h curse teh ecognomic grwothy and itz no longer allowed to growz so it gets stuntedddd like DLF in Prince Caspian.

X-turnal Stab-ill-it-teee: Becomez bery bery sad when t3h inflayshun monster cumz knocking and startz to wobble and twist. And den dere are no fairies left in the land of t3h current account deficit and der minister for trade becumz bery bery sad.
ahah... that kept me entertained for a while
 

Arowana21

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To outline it for u---->
Distribution of Income- when there is high inflation this indicates that economy is in an upturn and when economy grows, distribution of Y is more unequal with higher Y earners having benefit as sharholders etc....you can expand
Economic Growth- Hight EG = high inflation inverse relation
External stability include CAD, $A and FL- high inflation would mean decrease investment thus depreciation of $A meaning increasing in FD which increases CAD since more $A is needed to repay back.
 

BowDown2

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pigyar said:
What are the effects of inflation on the distribution of income, economic growth and external stability?
Dist of Y: Widens the gap between the rich and the poor as low y earners find their wages do not rise as quickly as prices...

Eco Growth: higher costs, reduced spending, reduce gdp, reduce eco growth

External Stability: aus x more expensive, reduced d for AUD, depreciation...increase d for aust x cause they are cheaper...improves CAD







it really depends what time frame u are talking about...e.g in the short term, inflation will detoriate the CAD but long term improve it
 
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