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About: Chronic inflation     Goto   Sponge   NotDistinct   Permalink

An Entity of Type : yago:WikicatEconomicProblems, within Data Space : dbpedia.demo.openlinksw.com associated with source document(s)

Type: yago:Abstraction100002137yago:Attribute100024264yago:Condition113920835yago:Difficulty114408086yago:Problem114410605diseaseyago:State100024720yago:WikicatEconomicProblems New Facet based on Instances of this Class

Chronic inflation is an economic phenomenon occurring when a country experiences high inflation for a prolonged period (several years or decades) due to continual increases in the money supply among other things. In countries with chronic inflation, inflation expectations become 'built-in', and it becomes extremely difficult to reduce the inflation rate because the process of reducing inflation by, for example, slowing down the growth rate of the money supply, will often lead to high unemployment until inflationary expectations have adjusted to the new situation.