If the inflation rate is high enough, it hurts the economy the effect depends on the type of inflation for example, pernicious inflation is between 3-10 percent a year. Inflation impacts your life by lowering your standard of living everything costs more if your income does not keep up, you cannot afford as much the balance how does inflation impact my life effect on you and the economy consumer spending drives economic growth. The impact of inflation and unemployment on the sustainable economic growth of any nation cannot be over-emphasized impact of inflation and unemployment on nigeria economic growth 1981-2015 therefore, this study will be of paramount importance to economic decision-makers, as it will equip them with the knowledge and skills needed to tackle. But all happens, if the growth and inflation impaired, that is healthy economy needs inflation if the growth get balanced with, the balanced economy, equal distribution of money, consistent growth will all get jel along with inflation to strengthen the gdp rate.
Before taking a deep dive into inflation's effects, it is best to start by understanding inflation in stark terms especially for those new to the world of economics, the issue of understanding inflation (and how it affects your daily life) can be confusing. If economic growth matches the growth of the money supply, inflation should not occur when all else is equal a large variety of factors can affect the rate of both for example, investment in market production , infrastructure, education, and preventive health care can all grow an economy in greater amounts than the investment spending.
What are the specific effects of inflation and why should you be concerned about its specter haunting the economy learn about inflation and more calculate total return and compound annual growth rate or cagr. Impact of inflation on nigeria economic growth 1981-2016 download the project from chapter one to five with reference inflation on nigeria economic growth is a trending issue in the lips of every actor in nigeria given the current double digit inflation rate @ 1863 in nigeria.
But all happens, if the growth and inflation impaired, that is healthy economy needs inflation if the growth get balanced with, the balanced economy, equal distribution of money, consistent growth will all get jel along with inflation to strengthen the gdp rate but the imbalance between the inflation and growth brings adverse effects to. Gdp is the total production that occurs in an economy thus if prices rise due to inflation, the cost of factors of production increases (raw material, labor, capital, ect) the cost of production also increases.
Impact of inflation and unemployment on nigeria economic growth 1981-2015 14 objectives of the study the broad objective of this study is to examine the impact of inflation and unemployment in nigeria with the view of examining the effect of inflation and unemployment on economic growth. Therefore, if growth was 5% and inflation was 2%, gdp would be reported at 3% as prices rise, the value of the dollar declines, as its purchasing power erodes with each increase in the price of basic goods and services.
Research type in order to understand the impact of inflation on the economic growth of pakistan, quantitative research is carried down data type. Or harms economic growth motivated by this controversial, this study examined the impact of inflation on economic growth and established the existence of inflation growth relationship time-series data for the period 1990 -2011 were used to examine the impact of inflation on economic growth.