Higher wages could increase inflation and push up prices of Korean products.
Their view is that deficit spending, by putting more money into circulation, increases inflation.
Traders did not see signs of fast enough economic growth to increase inflation.
They do not believe that deficit spending, "by putting more money into circulation, increases inflation."
When the dollar goes down, imports become more expensive, which can increase inflation.
Honduras has estimated that it will increase inflation by 10 points to almost 35 percent.
The fall can also increase inflation by making imports more expensive, but that is less of a threat with the American economy growing so slowly.
The main matter of debate is to what degree increased government spending would increase inflation.
Interest rates worldwide rose yesterday because higher energy prices would increase inflation.
It increases inflation, which means hoards of money lose value.