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Chapter 22: Q 28. (page 553)

Why do you think the U.S. experience with inflation over the last 50 years has been so much milder than in many other countries?

Short Answer

Expert verified

Because of the various reasons this situation happened.

Step by step solution

01

Step 1. Definition

Inflation is a situation in an economy when the average prices of all the goods and services increased because of some market pressures.

02

Step 2. Explanation

The U.S. experience with inflation over the last 50 years has been so much milder than in many other countries, there are various reasons for this situation. In the last two decades, the inflation rates of the US are like 2% to 4% only. The US faces high inflation in the periods like 1919s and 1970s last time, then after then the efficiency became stable and they don鈥檛 face high inflation rates.

In the 1990s many other countries face hyperinflation like China and Russia but the US doesn鈥檛 face inflation after the 1990s. today鈥檚 inflation rates of the US are much lower than the inflation rates of other countries.

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