Answer to Question #209635 in Marketing for kuni

Question

How can a country’s inflation rate influence the contractual payment policy?

Answer 1

Answer:

Central banks control interest rates to increase or decrease current demand for goods and services, economic productivity, the impact of the banking money multiplier, and inflation. Many monetary policy consequences, on the other hand, are delayed and difficult to quantify. This could make it difficult to agree on the contractual payment policy.