The Money Farm Team

What Does Inflation Being Transitory Mean?

Chairman Jerome Powell said Tuesday that the Federal Reserve has a different understanding of the term “transitory inflation” than most Americans, suggesting that the term be “retired.” Powell and Treasury Secretary Janet Yellen spoke before the Senate Banking, Housing, and Urban Affairs Committee on Tuesday, the first of two days of evidence on the Coronavirus […]

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What Happens When Inflation Decreases?

Readers’ Question: Consider the implications of a lower inflation rate for the UK economy’s performance. As the country’s goods become more internationally competitive, exports and growth increase. Improved confidence, which encourages businesses to invest and boosts long-term growth. However, if the drop in inflation is due to weak demand, it could lead to deflationary pressures,

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What Normally Happens In The Business Cycle After A Recession?

The business cycle stage following a recession that is marked by a sustained period of improving company activity is known as economic recovery. As the economy recovers, gross domestic product (GDP) rises, incomes rise, and unemployment reduces. What role does the business cycle play in a recession? There is no universally accepted definition of recession.

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