RE: My View on Problems of Inflation Rise...

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You gave very valid points here 👌
Please, I didn't really get what you meant by inflation decreasing unemployment. Can you briefly elaborate on that? Thanks for sharing.



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Obviously too high inflation may not decrease unemployment and a very low inflation rate increases unemployment. If the Inflation rate continues to decrease then it reduces spending which causes loss for business. which leads to an increase in unemployment. It is like a long connection with each other.

So a 5% to 2% inflation rate is helpful for good employment. However, if the inflation rate is 5% then unemployment is lower, but if inflation is 2% then Unemployment is higher. This concept is shown by the Philips curve. I got to know about this when I did some research about inflation.


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Hence I would say that it's a little complicated.

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