How Does Government Spending Affect Inflation?

We observed essentially little influence of government expenditure on inflation across the board. For example, we discovered that a 10% increase in government spending resulted in an 8 basis point decrease in inflation in our benchmark specification. Furthermore, the effect is not statistically significant. Does this mean that countercyclical government expenditure is inefficient at boosting

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Why Does Low Interest Rates Cause Inflation?

So, how do interest rates effect inflation’s growth and fall? Lower interest rates, as previously said, provide consumers additional borrowing capacity. When customers spend more, the economy expands, resulting in inflation. If the Fed determines that the economy is growing too quickly and that demand is outstripping supply, it might raise interest rates, restricting the

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What Does GDP PPP Mean?

Purchasing power parity (PPP) is a prominent macroeconomic statistic that compares the currencies of different countries using a “basket of goods” method. Economists can compare economic productivity and living standards between countries using purchasing power parity (PPP). To reflect PPP, some countries modify their gross domestic product (GDP) estimates. Is a high PPP beneficial? As

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