One of the required articles has the headline A Welcome Revi

One of the required articles has the headline “A Welcome Revival: Inflation may be on the way back in the rich world, and that is good news.”

Why, according to the article, is this “good news?” Explain clearly in 3-5 sentences, being sure to point out the concerns surrounding deflation.

Solution

ANSWER:

Inflation is a very good thing in comparison to deflation. Deflation accompanies recession, lack of jobs and a decrease in consumer spending on domestic goods. In few instances it is also accompanied by prolonged period of falling wages and stagnating per capita income. As a result the world\'s rich countries which are largest economies, the current economic concern is not one of inflation but of deflation or deflationary expectations