Question

Importance of inflation rate in macroeconomics

Answer 1

inflation rate helps in determining the growth factor of a country. the countries with low inflation rate shows that they are stable economies and have a Steady planning structure. it also shows about the govts contribution towards the economy since these rates may be stable when there is proper govt planning like in the Repo rate and reverse repo rates decisions made by govt, the supply of currency in the economy .
These rates may make an economy in depression ,Increase in poverty levels,Increase in Unemployment ,fall of stock markets, and all times of unexpected problems occur to an economy. Exchange fluctuations also contribute to the change in the inflation rates
Through all this points we can conclude that these rates affect bit not only individuals, but also the economy as a whole and all national or international factors may involve in the change of this rates