Illustrate what effect would a period of rapid inflation

Reference no: EM1330113

Money in high inflation with negative real interest rates

1. What effect would a period of rapid inflation likely have on the role of money as a store of value, and on people's attitudes toward money generally? Why?

2. in 1973-75, real interest rates were actually negative.
(a) what would a negative real interest rate mean?
(b) what could explain such an unusual development?

Reference no: EM1330113

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