How do inflation, recession, interest rates, currency exchange rates, and unemployment affect each other?

Question

How do inflation, recession, interest rates, currency exchange rates, and unemployment affect each other?

Answer 1

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Answer 2

that's complicated. read a book, sweetheart. :)

Answer 3

Interest rate and inflation is partially controlled directly by monetary policy (and a bit by fiscal policy).

Inflation (more unexpected) creates volatility in business environment, thus leading to loss of trust and consequently to lowering investment. Lower investment means lower production, thus higher unemployment.

Actually there are many different scenarios for all these variable and which affects which, but currency exchange rates are more effects than case for other variables, then from this list closer to effect goes unemployment, (recession is just description of a process), but interest rates and inflation are more affecting variables than dependent.