some countries have had high inflation for a long time. others have had low or moderate inflation for a long time. which of the following, at least in theory, could explain why some countries would continue to have high inflation

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Marie Vincent

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8 October, 05:35

some countries have had high inflation for a long time. others have had low or moderate inflation for a long time. which of the following, at least in theory, could explain why some countries would continue to have high inflation

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Answers (1)

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Peyton Holt · Answer 1

Budget Deficit

Explanation:

A budget deficit is a major reason why many countries will continue to experience high inflation. Studies have shown that many developing countries like Nigeria, have consistently been experiencing inflation, owing to consistent budget deficit.

Most developed economy with a balanced budget, do not experience high inflation, as they have good economic policies and political will which stimulates economic growth.