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Clarification about sacrificing ratio?

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Question ajoutée par suraj wagle suraj
Date de publication: 2015/09/30
Zoheb Fahd Syed
par Zoheb Fahd Syed , Business Analyst , Oracle India Pvt Ltd

The sacrifice ratio measures how much output is lost when inflation goes down by1%. In our example, output falls by $ million. This helps central banks decide what to do about their monetary policies, which can stimulate or slow down economies. For example, if inflation is getting too high and the central bank wants to do something about it, it can consult the sacrifice ratio to determine how its actions will reduce output in the economy.

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