Topic Reading-Vol.3662-4/21/2022
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〒180-0006 東京都武蔵野市中町2-3-5 IIHA武蔵野1階
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Topic Reading-Vol.3662-4/21/2022
0422-27-5366
〒180-0006 東京都武蔵野市中町2-3-5 IIHA武蔵野1階
電話受付/月〜金 9:00-18:00
Topic Reading-Vol.3662-4/21/2022
Dear MEL Topic Readers,
Christine Lagarde keeps options open as Europe grapples with ‘stagflation’
Inflation is the rate of increase in prices over a given period of time. When high inflation takes place, the value of a currency falls and then prices for goods and services rise accordingly. Moderate inflation doesn’t cause problems as long as people’s incomes are also rising. But if prices rise faster than the rate of wage increase, people suffer from high prices, especially the poor whose most of the income is spent on daily necessities. This condition is called stagflation, a combination of stagnant output and rapid price increases. As buying power declines, the economy falls into recession. This is what politicians, economists, businesses, and consumers are all afraid of the most. As Eurozone inflation reached 7.5% in March, the highest level in decades, the European Central Bank, ECB, is under heavy pressure to raise the interest rate to curb inflation. However, it is not that simple as Eurozone is still trying to recover from Covid and manage the impacts of the Russian invasion of Ukraine. Indeed, the ECB is walking on a very tight rope to manage the economic challenges during this very difficult time.
Enjoy reading the article and learning about inflation and deflation in Eurozone.
https://edition.cnn.com/2022/04/14/economy/ecb-lagarde-inflation-interest-rates/index.html
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