Buy custom Conflicting Goals In Economic Growth
Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
4 / 892 |
Essay's paper body
That uncertainty can hinder economic growth in a couple of ways--it adds
an inflation risk premium to long-term interest rates and it complicates the
planning and contracting by business and labor that are so essential to capital
formation. High inflation also hinders economic growth in other ways...
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High inflation also hinders economic growth in other ways. For
example, because the tax system isn't in agreement with inflation, high
inflation arbitrarily helps and hurts different sectors of the economy. In
addition, it makes people spend their time hedging against inflation instead of
pursuing more productive activities...
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