Optimal Inflation Rate



Optimal Inflation Rate

Introduction

Inflation rate is referred to a rate at which the general level of products and services in a country rises and the purchasing power of the people residing in the country falls. The Central bank of the country is responsible to control this rate and keep the rapidly growing prices of commodities to minimum level. There are some factors that influence the inflation rate prevailing in a country that would be discussed in the following answers given in response to the questions asked about inflation rate.

Answer 1: Factors Determining a Nation's Optimal Rate of Inflation

The most ...