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Questions tagged [inflation]

Inflation is when prices are rising across the scope of an entire economy. Use to discuss the political reasons for, and solutions to, this problem. Use also for it's lesser-known inverse: deflation. General economic questions may be asked on Economics.SE

4 votes
0 answers
161 views

Is there any policy from the Trump administration that would have a deflationary effect?

In markets it is known as the “Trump trade”, a bet that Donald Trump’s return to the White House would herald more inflation and higher interest rates. Many of Mr Trump’s core policies push in this ...
Sayaman's user avatar
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28 votes
2 answers
8k views

Why is Afghanistan experiencing extreme deflation?

This website shows the inflation rates in various countries around the world. Almost all countries have a positive inflation rate; in some of them the rate is quite high. But there is one remarkable ...
Erel Segal-Halevi's user avatar
4 votes
2 answers
2k views

When and why did US food prices surpass the ones in Western Europe? [closed]

I first visited the United States around 30 years ago and then a few times over the following couple of years. The last time was around 2005. One thing I remember is the low prices of food compared to ...
Ray's user avatar
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17 votes
4 answers
4k views

Why does the "Fight for 15" movement not update its target hourly rate?

The US has not had a federal minimum wage update for a very long time. In 2012, there emerged been a loose movement to "Fight for 15" - push for an increase of the (federal and not just) ...
einpoklum's user avatar
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8 votes
2 answers
1k views

Why is the Inflation Reduction Act called the Inflation Reduction Act?

The US Senate has recently passed the Inflation Reduction Act. Admittedly, I did not read all 755 pages of the bill, but the media claims that it is one of the biggest investments on climate change ...
Hosea's user avatar
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33 votes
7 answers
9k views

What is the reason for the high US inflation rate in 2022?

As reported in the news, for example the Guardian, US current inflation rate is above 8% in annual rate, close to a 40-year high. Can someone please help me understand the root cause? I started ...
avocado's user avatar
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2 votes
2 answers
410 views

Are food stamps being destroyed by inflation?

Is the real purchasing power of EBT (and other welfare) being rapidly destroyed by high food inflation?
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5 votes
2 answers
513 views

Would policies that forced millionaires and billionaires to inject significant amounts of their wealth back into the economy cause inflation?

By my knowledge of the current situation, the majority of the wealth in many countries is held by a few individuals with incredible amounts of wealth. Much of it is in the form of stock options and ...
NegativeFriction's user avatar
6 votes
2 answers
513 views

Why Turkey's president thinks that by cutting interest rate it will lower inflation?

Recently, President Erdogan sacked the head of Turkey’s central bank because he didn't want to cut interest rates. He even said: “We said that if rates fall, inflation will fall. He didn’t do what was ...
Victor's user avatar
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11 votes
4 answers
2k views

What are the advantages and disadvantages of having minimum wage automatically adjusted for inflation?

I have heard some people advocate that minimum wage should be automatically adjusted for inflation, reindexed on a yearly basis. For instance, if the minimum wage is $10/hr and inflation is at 5% that ...
Thunderforge's user avatar
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4 votes
1 answer
306 views

Below-zero interest rates vs. inflation?

The Economist contemplates three advantages that could result from getting rid of cash in favor of electronic payments only ("with credit cards, mobile phones, and even watches"). It also mentions ...
Drux's user avatar
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18 votes
5 answers
5k views

Why does Venezuela have such high inflation?

Background: In late 2013, Venezuela's inflation rates increased even higher, to 54.3%, As of January 2014, the official exchange rate is 1 USD to 6.3 VEF while the black market exchange rate is ...
Razie Mah's user avatar
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