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The Federal Open Market Committee considers an inflation rate that increases annually by 2 percent to be a healthy indicator of price stability and maximum employment. A small level of inflation reduces the chance of har... More »

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As inflation occurs, the central bank is able to adjust interest rates, thus encouraging economic growth. Without adjusted interest rates, there would be little growth during times of inflation as people's purchasing pow... More »

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Inflation rates are calculated by the percentage difference between the Consumer Price Index, or CPI, of two dates. The inflation rate for the annual period between October 2014 and October 2015 is calculated by subtract... More »

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The inflation rate calculated with the help of the gross domestic product, or GDP, deflator uses the price index that indicates how much of the GDP has changed in the previous year is based on changes in the price level.... More »

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To curb inflation is to reduce the rate at which the value of currency goes down. When inflation rates are high, prices of goods tend to increase more quickly. Curbing inflation is therefore beneficial to a country's eco... More »

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Inflation is measured by tracking numerous price indices and surveys that indicate how prices have changed for goods and services over time. Every month in the United States, the Bureau of Labor Statistics gathers data o... More »

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The Federal Open Market Committee meets eight times per year, which is approximately every six weeks, and sets the federal funds rate, according to the Federal Reserve. The Federal Open Market Committee adjusts the rate ... More »

www.reference.com Business & Finance Financial Calculations