MASTER DEGREE PROJECT EXCHANGE RATE VARIATION AND INFLATION IN NIGERIA (1970- 2007) Master Degree Project in Economics and Finance D-Leval 15 ECTS Spring term Year 2008 Onosewalu Okhiria 761130-P319 Taofeek Sesan Saliu 761130-P719 Supervisor: Bernd-Joachim Schuller(PhD) Examiner: Max Zamanian (PhD) ABSTRACT This study examines the impact of exchange rate on inflation in Nigeria economy between 1970 and 2007. We analysed the trend of inflation and exchange rate in the last 38 years by evaluating
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Inflation is the rise in the general level of prices. This is equivalent to a fall in the value or purchasing power of money. It is the opposite of deflation. Measuring inflation Inflation is measured by observing the changes in prices of goods in the economy using econometric techniques. The rises in prices of the various goods are combined to give a price index that reflects the change in prices of these many goods‚ where the inflation rate is the rate of increase in this index. There is
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Causes and effects of inflation You are Here: Home > Managerial Economics > Causes and effects of inflation Share Definition of inflation and it’s types Causes of Inflation 1. Over- Expansion of Money Supply: Many a times a remarkable degree of correlation between the increase in money and rise in the price level may be observed. The Central Bank (India’s RBI) should maintain a balance between money supply and production and supply of goods and services in the economy. Money supply exceeds
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The Cause and Effects of Inflation Chris Hinman Most people are aware that inflation is a continuing rise in the general level of prices‚ but it is also important to know the causes and effects of inflation as well. It is also important to understand that inflation is self-sustaining and can act as a snowball effect. Consumers expecting a rise in prices may increase spending‚ causing the market prices to rise. In the periods of higher prices‚ producers may be more inclined to increase wages
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LETTER OF TRANSMITTAL Date: August 20‚ 2004 To: Professor Kahlil-ur-Rehaman From: SUMS Group Subject: Transmittal of Project We are given pleasure to transmit this report‚ “Relationship between Inflation & Employment” under the unprejudiced conclusions of Financial Management Course‚ during summer (3rd) semester 2004 of MBIT program‚ IBIT department‚ University of the Punjab. We have arranged our superlative efforts in originating this undertaking. We enormously enjoyed
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INFLATION : A sustained rise in the prices of commodities that leads to a fall in the purchasing power of a nation is called inflation. Although inflation is part of the normal economic phenomena of any country‚ any increase in inflation above a predetermined level is a cause of concern. How is inflation measured Inflation in India is measured through a WPI ( wholesale price index ) . In India‚ the wholesale price index (WPI)‚ rate consisted of three main components - primary articles‚ which
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ASSIGNMEN The effect of inflation on the economy of bangladesh COURSE NAME Course: BUS Code- 201 PROGRAM BBA SUBMITTED TO Ashik Mahmud Department of Scholl of Business University of Liberal Arts Bangladesh SUBMITTED BY Rahatul Islam ID: 091011146 Sec: 01 SUBMISSION DATE 01/03/2013 Department of Business Administration University of Liberal Arts Bangladesh What Is Inflation? Is the unexpected
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Is inflation always bad for an economy? Inflation is a general increase in prices and fall in the purchasing value of money measured as percentage; ways of measuring it include the retail price index and the consumer price index. One cost of inflation is that firms may have to spend money‚ time and effort moving money around financial institutions (banks etc.) so that they can ensure it doesn’t lose its value‚ it incurs shoe leather costs as a result of this. However these costs can be offset by
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Inflation impacts on many facets of the economy‚ these impacts can be both long and short term. It is generally the case that higher levels of inflation carry more severe consequences thus it is often the aim of government to sustain a low level of inflation. Inflation effects economic growth and certainty‚ wages‚ unemployment‚ international competitiveness‚ exchange and interest rates amongst other things. High inflation can be a major constraint on economic growth and certainty which ultimately
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ECONOMICS 102 PRACTICE MIDTERM #2 Covered: Chapter 5 Large Open Economy Chapter 7 (No velocity or elasticity) Chapter 9 (No AD/AS model) A. Multiple choice 1. The nominal demand for money is proportional to a. real income. b. the nominal interest rate. c. the nominal interest rate on money. d. the price level. e. None of the above. 2. Lower interest rates increase the real quantity of money demanded a. by changing the distribution of wealth toward the poor‚ who have
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