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Ginger

Which is more important to control; inflation or unemployment?

Sunni:

They walk hand in hand -

Ginger:

If you had the choice of improving one, which would it be?

Sunni:

If you improve the unemployment the inflation is effected in the right direction so I'd have to say unemployment because you simply cannot improve inflation without working on the unemployment.

Ginger:

But, inflation usually increases as employment increases. Improving one adversely effect the other. Higher unemployment, lower consumer demand, lower inflation. Lower unemoloyment, higher consumer demand, higher inflation.

Sunni:

Am I remembering my economics wrong on this?
-consensus view is a sustained period of inflation is caused when money supply increases faster than the growth in productivity in the economy
http://en.wikipedia.org/wiki/Inflation
yip it appears I did and appreciate the refresher
but I'm going to stick with improving on the unemployment so that all can afford the inflation : )
wiki also reminds us-
Inflation may widen an income gap between those with fixed incomes and those with variable incomes.

Ginger:

Very good. Thank you for thaking the time to consider the question.

DJ:

Inflation. It destroys the value of currency and only increases the cost of employing people. Inflation also makes the products made by a nation more expensive on the international markets, and discourages the hiring of new employees.

Ginger:

Thank you for your answer.

Boxermom:

Inflation.

Ginger:

Thank you for your answer,

Answer:
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