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  • About
  • Knowledge Centre
    • Economic Growth and the Business Cycle
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Tag Archives: full employment

Strong Growth and Low Unemployment are Deflationary Forces

Monetary Policy and InflationBy Stuart AllsoppOctober 1, 2018Leave a comment

Intro: When more people are working there are more of goods and services being produced, which in the absence of increased money supply tends to lead to falling prices. Rapid growth can occur alongside high inflation but this tends to be the result of increased economic confidence leading to faster bank lending and borrowing, increasing…

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