Tuesday, December 14, 2010

Why rate a 0 (zero) inflation affecting unemployment?

Economic theory suggests that employment with related is the inflation rate of unemployment may cause deflation and depression. Monetary policy is used to stimulate the economy, a balance between employment and inflation. Zero inflation inflation Ratea 0 (zero) means, is value for money in the course of time. According to the Group of political profit the Brookings Institution think 0 would permanently (zero inflation employment.Natural GrowthThere of course in the number of workers in the labour market is increased because the population is not stagnant. Unemployment.Natural more UnemploymentThe Federal Reserve Bank of Atlanta the inflation rate of unemployment (NAIRU) non acceleration as a controversial supposedly natural unemployment rate holds steady described - economy without inflation or deflation a growing workforce combined with no inflation lead.

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