Inflation, this word certainly carries fear and resentment among many. This condition is a self-defining term meaning increase. Inflation may show a direct correlation with the negative impacts on the standards of living decreasing. As inflation proceeds to increase, so do the cost of certain necessities that may again impact the standards of living. Presently the core inflation rate removes the effect of certain seasonal food and energy increase. Additionally, the target inflation rate is at 2.2% and has fluctuated slightly since the beginning of the 2016 calendar year ("Databases, Tables & Calculators by Subject", 2016).
Additional causes of inflation may be linked to three specific causes of demand-pull, cost-push, and monetary expansion. …show more content…
We must remember that there are three specific curves that may be present. These three types are being normal, inverted and flat. Currently we see a trend that shows a normal curve. This normal curve type is indicative of as Investopedia states, “is one in which longer maturity bonds have a higher yield compared to shorter-term bonds due to the risks associated with time” ("Selected Interest Rates"). With this trend a positive financial economy is anticipated to continue to improve well. In review this growth trend is drastically different from the curve that was seen in 08’ and 09’. Though, in consideration this upward trend does not show a that the interest rates are neither high or low. Interest rates may be significantly different from one phase to another. Additionally, even though we see a normal curve, it is imperative that we keep a close on the yield curve. For this yield curve may change depending on certain Federal policy changes. Further issues that need to be examined are the degree of international situations, for these act as a stronghold for the United Sates economy. A contributing factor to the world wide conditions improving, are the continual central bank stimulus that transpire which aids growth to occur throughout the
Additional causes of inflation may be linked to three specific causes of demand-pull, cost-push, and monetary expansion. …show more content…
We must remember that there are three specific curves that may be present. These three types are being normal, inverted and flat. Currently we see a trend that shows a normal curve. This normal curve type is indicative of as Investopedia states, “is one in which longer maturity bonds have a higher yield compared to shorter-term bonds due to the risks associated with time” ("Selected Interest Rates"). With this trend a positive financial economy is anticipated to continue to improve well. In review this growth trend is drastically different from the curve that was seen in 08’ and 09’. Though, in consideration this upward trend does not show a that the interest rates are neither high or low. Interest rates may be significantly different from one phase to another. Additionally, even though we see a normal curve, it is imperative that we keep a close on the yield curve. For this yield curve may change depending on certain Federal policy changes. Further issues that need to be examined are the degree of international situations, for these act as a stronghold for the United Sates economy. A contributing factor to the world wide conditions improving, are the continual central bank stimulus that transpire which aids growth to occur throughout the