Inflation example sentences

If one country has higher inflation than another, its exchange rate should be depreciating.Also, there are many goods that are not tradeable and inflation rates for them will not matter.According to the PPP theory, differences in the domestic inflation and foreign inflation are a major cause of adjustment in exchange rates.High inflation rates generally result in constraints on business enterprises as they increase the various costs of business such as the purchase of raw materials or machinery and payment of wages and salaries to employees.Interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee are some of the economic factors that can affect management practices in a business enterprise.On the other hand, there may be times when expenditures exceed the available output under conditions of high employment and thus may cause inflation.Third, the economy tends to be subject to substantial fluctuations and may suffer from prolonged periods of unemployment or inflation.A high fiscal deficit is accompanied by higher demand and greater output and, therefore, need not be inflationary.Particularly, when these attributes start changing fast, like when prices are going up (in what is called an inflation), or employment and production levels are going down (heading for a depression), the general directions of the movements of these variables for all the individual commodities are usually of the same kind as are seen for the aggregates for the economy as a whole.We are normally living in inflationary economies where the power of money declines constantly.As too much money is now chasing the same old quantities of output, the process ends up in bidding up prices of every commodity – an increase in the general price level, which is also known as inflation.For microeconomics the macro (meaning large ) phenomena affecting the economy as a whole, like inflation or unemployment, were either not mentioned or were taken as given.