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Inflation is one of the factors that have a positive impact or negative rate of economic growth through multiple channels with a level of overall effects vary dramatically, depending on the institutional structure (both State and private) of the economy, depends on the ability to adapt to the prevailing inflation rate and ability to predict inflation. Thus, moderate inflation is seen as helping economic growth through encouraging mobilization of capital and increased exchange rate flexibility. The low inflation rate may help lubricate the market of goods, labour and increase flexibility with respect to relative price
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