When was the last time a "value" meal from McDonald‚ let alone any other fast food chain‚ did not cost five dollars or more? When was the last time premium gas was under a dollar a gallon? It’s hard to remember‚ isn’t it? Wouldn’t it be great if everything cost a nickel‚ like back in the good ol’ days? According to the laws of economics‚ it’s not logical for things to have gotten more expensive competition should drive prices down. Then why have prices continued to rise over the years? The continuing
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Australia going into recession Submitted to Submitted by Bhagwant Virk What is recession? Recession is a significant decline in economic activity mainly a decline in GDP of an economy for two or more successive years. Recession results in major sink in stock market‚ real income ‚industrial production‚ employment opportunities and real estate. What Causes recession? 1. Any economy typically goes to recession for six months extending to two years. 2. A recession normally takes place when consumers
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Exchange Rate Policy in Bangladesh: A Review of Key Concepts and Issues ----------------------------------------------------- In an open and deregulated economic environment‚ exchange rates can play an important role in macroeconomic management for stability and growth. The increasing role of exchange rates since the early 1970s has indeed been a break from the Bretton Woods tradition of the 1950s and 1960s that assigned a limited role for exchange rates in economic affairs. However‚ the banking
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the predictable view of the stability of payments says that a small devaluation of currency improves trade balance. This vision is fixed in a static and limited equilibrium approach to the set of scales of payments that is well known as elasticity approach (Metzler‚ 1948). The view was the substitution impacts with in consumption and production induced by the relative price domestic versus foreign changes caused by devaluation. The model‚ which commonly known as BRM model‚ has been recognized in
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How successful were the labour governments of 1964-1970 in fulfilling their promise to create a New Britain? During 1964 to 1970‚ The Labour government planned to create a ‘New Britain’ under the leadership of Harold Wilson. The most important successes of the Labour government include education‚ social freedoms and the freedoms of women. However‚ the most important failures of labour included its lack of the scientific minds in the party and its failure of large economic and technological advancement
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“Save money. Live better.” This is the promise that the world biggest retailer “Walmart gives to customers since they started business back in early 1940. Low price has always been Walmart strategy. Since their early days‚ they claimed “We Sell for Less” as their tagline. Later on‚ “Always Low Prices. Always” displayed alongside with Walmart logo. The biggest challenge for them is to keep the price down with good product quality. Why does Walmart important for American economy and beyond? According
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The International Debt Crisis What is International Debt? Like individuals and families who borrow money to pay for a house or an education‚ countries borrow money from private capital markets‚ international financial institutions‚ and governments to pay for infrastructure such as roads‚ public services‚ and health clinics; to run a government ministry; or even to purchase weapons. Also like individuals‚ countries must pay back the principal and interest on the loans they take out. But there are
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Comparison of CB between Argentina and Hong Kong HK main event In 1983‚ Hong Kong established her Currency Board. Hong Kong dollar (HKD) has pegged with the US dollar (USD) at a rate of USD1 to HKD7.8. The major event that assaulted Hong Kong CB was the 1997 Financial Crisis. During that crisis‚ speculator attacked HKD by short selling them. Speculators used hedge funds and attacked the Hang Seng Index (HSI) at the same time. Although the HK government already imposed penalty on “repeated borrowers”
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INDIA’S FOREIGN TRADE Foreign trade or international trade refers to the trading of goods between countries. Thus‚ international trade is an extension of internal trade i.e.‚ trade between two different regions within a country. Just like as single region within a country cannot produce everything it needs by itself‚ one single economy cannot produce every commodity all by itself. This could be due to differences in the availability of natural resources‚ skills of people‚ etc. Therefore‚
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thousand eight hundred dollars ($1800) in 2002 to four thousand five hundred dollars ($4‚500) in 2011‚ (Ministry of Labour & Social Security 20011). This does not offset the increased costs faced by this group‚ while at the same time some receive no increase and others became unemployed. Inflation reduces the purchasing power of the consumer because of the devaluation of the local currency. One manifestation of this is the introduction of the new Five Thousand Dollars ($5000.00) note. As the
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