future inflation impacts ?

2009-01-20 4:05 pm
How the future inflation impacts on the exports by foreign investors in China?

回答 (2)

2009-01-20 4:18 pm
✔ 最佳答案
After our money has become inflated it has less value and you need more of it to buy the same item or quantity of goods. So when importing from China or from any foreign country, the price of the goods will rise and the amount of goods imported will shrink, due to not all of the now inflated money being so easily available as it was before.
2016-04-11 5:35 pm
Hyperinflation has negative impacts on the economy. Actually, most modern governments think moderate inflation is a good thing. It helps in labour negociations. Anyway... Economists understand inflation as a transfer of wealth from lenders to borrowers. Basically, if you're lending money and that money is worth less with time, then that's a bad thing for you, If you borrow money, and that money is worth less, that's good for you. If inflation is very high, it can discourage lending altogether, or only at very high interest rates, which slows down your whole economy. (Borrrowing money being considered the prime source of investment in most macroeconomic models). Now hyperinflation is the real problem (most governments today consider 1 - 2 percent rate to be normal). Hyperinflation means money is losing its value very quickly. It's usually a sign of loss of confidence in the economy entirelly, for whatever reason, real or imagined. In Zimbabwe, they printed the stuff like crazy. The government's solution to everything was to print more money. In the end, the ZImbabwe dollar was worthless. In that case, people scramble to buy stuff with their money before it's worth even less. There is no stability in such economies.


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