通货膨胀inflation英文PPT祥解.pptVIP

Whats inflation? （Prices of things are going up）Inflation is the overall or specific increase in the cost of a good or service. It occurs when there is too much money in circulation relative to the production of actual goods and services Occur It characterized by an increase in prices and wages, and declining purchasing power. Inflation is usually measured by changes in the Consumer Price Index (CPI). The result is diminished purchasing power, and frequently a lower rate of savings as wage earners put more of their disposable assets in consumption, and less in long-term savings. Inflation is a monetary phenomenon. Cost -pull inflation Increases in government taxes and fees can lead to inflation (especially when businesses are taxed). When the cost of business goes up, product prices go up. When prices go up your income effectively goes down. Then you have to work harder or find a better job. Or hope that your employer will give you a raise. This then makes the business costs go up and so prices go up and so on.  If interest rates go up, inflation can also result. If it costs more to borrow money, the cost of doing business has gone up and so will product and service prices. ralative foreign exchange rate; prices of imports(materials)  Inflation in America Inflation in America has been relatively steady. There have been some periods of high inflation, such as was seen in the 70s, but on average inflation in the US has been steady at about 3% for the past 30 years. Some countries have experienced inflation above 1000% in a single year. For the last 10 years inflation has been relatively low. It is the opinion that inflation has been minimal because people have relied on the stock market boom of the 90s to supply extra cash. Also many people have taken on additional debt rather than curtail缩小 their spending. Credit lifestyle But people can only stand so much debt. Once you are maxed out on your ability to pay (you may never max out your credit limit as