Economics

How Does Unemployment Cause Inflation?

The Phillips curve shows that historically, inflation and unemployment have had an inverse connection. High unemployment is associated with lower inflation or even deflation, whereas low unemployment is associated with lower inflation or even deflation. This relationship makes sense from a logical standpoint. When unemployment is low, more people have extra money to spend on […]

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How Does Inflation Affect Insurance Companies?

For numerous reasons, life insurers are more likely to be indirectly affected by inflation. Inflationary pressures diminish the current value of fixed future payouts, discouraging life insurance purchases and increasing lapse rates. Is inflation beneficial to insurance firms? Inflation affects insurance firms in the sense that renewing the same number of exposures in future years

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Does Military Retirement Increase With Inflation?

COLA. An yearly Cost of Living Adjustment (COLA) protects all military retirements against inflation, based on changes in the Consumer Price Index (CPI) as measured by the Department of Labor. Is inflation factored into military retirement? The built-in annual Cost of Living Adjustment is one of the features that makes military retirement pay so valued

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Why Is GDP Important To Economists And Investors?

Because it represents a representation of economic activity and development, GDP is a crucial metric for economists and investors. Economic growth and production have a significant impact on practically everyone in a particular economy. When the economy is thriving, unemployment is normally lower, and salaries tend to rise as businesses recruit more workers to fulfill

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