Inflation and effects on Australia
Inflation is the sustained increase in the general price level in an economy. Since the mid 1990's the Australian Government has placed high priority on controlling inflation due to the negative impact it can have on our economy. It uses monetary policy, fiscal policy and microeconomic reforms to control inflation and achieve non-inflationary sustainable economic growth and low unemployment. Inflation is a restraint towards economic growth and can instil uncertainty in economic agents' view about economic conditions, which heightens inflationary expectations. It also distorts the pattern…
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