Conflicting Goals In Economic Growth

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Issue:

Business

 

Written by:

Christine R

 

Date added:

August 10, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 892

 

Was viewed:

3749 times

 

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Essay content:

Pushing unemployment below that level would cause inflation to rise and thereby ruin the other objective-- stable prices, economic growth, which is our objectives in the long run. Overall financial stability will lead to a better balance between consumption and saving that will make resources available for investment purposes, reduce changes in the economy created by the inflation in the past, and by the reactions of savers, as well as fostering high and sustainable economic growth; and contribute towards an investor friendly environment that will attract foreign investors to the country...
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This evidence is a comparison across countries over long periods. The association between economic performance, measured by growth of output or growth of productivity, and inflation. This indicates a negative relation; that is, the higher the inflation, the lower the rate of real growth. Evidence suggesting that low inflation promotes growth has motivated recent decisions by a number of central banks and governments, most notably New Zealand...
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