The economic slowdown combined with high rates of inflation has been worrying business and industry leaders.
The 1970s had been a decade pockmarked by rising rates of inflation and unemployment.
The ongoing instability in the Middle East is intensifying concern about higher rates of inflation.
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Many, for instance, still have relatively high rates of inflation (say, 20% or more).
The economic slowdown combined with high rates of inflation has been worrying India's business and industry leaders.
Therefore, subtracting rising rates of inflation from falling nominal interest rates results in a falling real rate of interest.
It is important to consider inflation because even mild rates of inflation have profound effects over long periods of time.
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But the policy has created hardships for Chinese citizens (such as disproportionately low rates of consumption and high rates of inflation).
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Venezuela has one of the highest rates of inflation in the region and crime rates have soared in recent years, particularly in Caracas.
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With talk that the bank will now tolerate higher rates of inflation for longer, how do they view the prospects for the economy?
This was made necessary by the Maastricht convergence criteria, which required countries joining Europe's single currency to have similar, low rates of inflation.
Investors who seek to surpass rates of inflation must step out further on the ledge of risk, and, clearly, all risk is not created equal.
In America, too, real post-tax interest rates are not historically low, in part because mortgage-interest tax relief is worth less at lower rates of inflation.
Deposit rates in banks are actually below the rates of inflation.
High rates of inflation are therefore bad for growth and jobs.
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Chinese leaders have been debating whether to push interest rates higher, but Mr Kuijs says Chinese policymakers have become more tolerant of medium rates of inflation.
Turner Sims Concert Hall and John Hansard Gallery both received more money but, taking into account current and expected rates of inflation, the real value is a decrease.
Mr Wyplosz concludes that low rates of inflation carry a significant unemployment cost, and that the optimal rate may be higher in Europe than it is in America.
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Wages for lower-level staff are also rising quickly, increasing by 14% in Indonesia last year, 11% in India and 8% in China well above the rates of inflation in each country.
First, a conservative group called Rescue California, which helped gather signatures to recall the previous big-spending Democratic governor, Gray Davis, wants to launch a ballot initiative that would limit spending increases to the rates of inflation and population growth.
But with the average rate on a savings account at 0.24 percent, on a money market account at 0.22 percent, and on a 1-year CD at 0.53 percent, nominal returns are close to zero, and real returns are negative even at relatively low rates of inflation.
Such will of course be supportive of high rates of monetary inflation yet again in April.
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And that means a return to much higher rates of monetary inflation.
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Venezuela has South America's highest rates of both inflation and murder.
But if this trend in private bank money creation continues, it does augur for higher rates of monetary inflation, especially, as Chairman Bernanke suggested at Jackson Hole in August, if aided and embedded by a reduction in the rate of interest the Federal Reserve pays banks on those excess reserves.
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Under normal circumstances, interest rates would adjust to the level of inflation, but given the persistently soft economic conditions of the past few years, interest rates have remained low in spite of inflation.
India suffers from high interest rates because of rising inflation, rapid growth, high risk, and an ever-expanding demand for borrowed dollars.
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Friedman is also noted for developing the Philips Curve, an economic model that noted the inverse relationship between the rates of unemployment and inflation.
And one possible step in that direction would be to state explicitly the range of inflation rates Fed officials will tolerate, a practice known as inflation-targeting.
It only put the house bubble on hold and prepared (by way of ridiculously low interest rates) the great inflation of 2003 to 2005.
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