Economics

How Can Mild Inflation Stimulate Economic Growth?

Genuine inflation, in which salaries rise in lockstep with prices, has some benefits for economic growth. It primarily stimulates capital investment and risk-taking since businesses are certain that product prices will rise over time, allowing them to repay their investment. Banks prefer moderate inflation because it ensures that the value of their loan collateral does

How Can Mild Inflation Stimulate Economic Growth? Read More »