Since, for most of the period under consideration Mexico experienced inflation rates higher than 10 percent, this result is consistent with most of the research suggesting that high levels of inflation produce a negative effect on economic growth.
The analysis could be useful for policymakers in providing some clue in setting an optimal inflation target.
This relation posts an intuitive sense among the economists. The simple logic between this is that workers will be needed to push for higher wages as unemployment increases....
[tags: Inflation, Unemployment, Phillips curve] - Inflation is a tendency for nominal prices to increase.
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The index of measurement of the inflation is the Index of Prices to the Consumer (IPC).
This index measures the percentage increase in prices of a basic basket of products and services that a consumer acquires in the country. Deflation is a general decline in the prices of an economy, which is the opposite of inflation....
But if inflation surpasses of what is expected than employer will have to reduce wages to meet these new prices....
[tags: Inflation, Money supply, Economics, Money] - Determinants of Inflation in Australia Abstract: The objective of this study is to examine the determinants of inflation in Australia using the time series data from 1995 to 2015.