What is inflation rate? Inflation means a sustained increase in the aggregate or general price level in an economy. Inflation means there is an increase in the cost of living. What are the economic policies that lead to low inflation in an economy? 1. Monetary Policy In the UK and US‚ monetary policy is the most important tool for maintaining low inflation. In the UK‚ monetary policy is set by the MPC of the Bank of England. They are given an inflation target by the government. This inflation
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Article about Inflation Subject: Economy Submitted: Thursday‚ 29 November 2012 By: ID: 014201000039 Name: Joseph Amos P President University‚ Cikarang Baru‚ Bekasi‚ Indonesia 2012 Economics is the most important aspect of a country. The reciprocation of a country is seen in terms of economy. Economics also become a benchmark of development and prosperity in a country. Why does the economy become vitally important in a country? The word "economy" you hear about in everyday life and are
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Macro-Economics – Case Study Inflation In India Is inflation in India structural or monetary? The recent inflation rise was largely cyclical and that the structural inflation trend should remain stable in the range of 5-5.5%. India ’s inflation has been lower compared with other emerging markets. Inflation WPI and CPI-Industrial Workers (CPI-IW) have averaged 5.3% and 6.8%‚ respectively‚ over the last 15 years compared with 11.2% average (CPI) for emerging markets. Double-digit inflation is not the norm
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argued that inflation is both good and bad. How can this be?Explain. Are government efforts to control inflation well-advised? Explain. In economics‚ inflation is a rise in general level of prices of goods and services in an economy over a period of time. When the general price level rises ‚ each unit of currency buys fewer goods and services. It is a loss of real value in the internal medium of exchange and unit of account in the economy. A chief measure of price inflation is the inflation rate. As
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CAUSES OF INFLATION Inflation is caused when the aggregate demand exceeds the aggregate supply of goods and services. We analyze the factors which lead to increase in demand and the shortage of supply. Factors Affecting Demand Both Keynesians and monetarists believe that inflation is caused by increase in the aggregate demand. They point towards the following factors which raise it. 1. Increase in Money Supply. Inflation is caused by an increase in the supply of money which leads to increase
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What is inflation? Measurement of Inflation Causes and theories of inflation Types of inflation Effects of inflation Fiscal policy Monetary policy Last two years in India Issues:- 1-Inflation in different sectors Factors- 1-supply constraints 2- demand pressures 3- domestic factors Effects of inflation- Control measures adopted in India Conclusion (with future perspective) Inflation A persistent rise in prices in an economy over a period of time is referred to as inflation. Inflation
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Money and Inflation The nation’s economic stability has many factors which amount to inflation. Inflation may be caused by a number of problems‚ but there are some specific examples which have direct control over which way the prices and spending sway. Inflation simply means that the American dollar‚ in this case‚ is less valuable on the foreign exchange market and the gold standard is moved to higher prices; which simply means that more currency is needed to exchange for gold. Any slight
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Vietnam faces more price hikes despite inflation woes Vietnam’s government is set to raise electricity prices by 15% on Tuesday‚ at a time when the population is already struggling with a soaring cost of living. Last week the Vietnamese government also raised the retail prices of oil products by as much as 24%. In February‚ inflation hit a two-year high of 12.31%. Analysts say despite the government’s measures to tighten monetary policy‚ price pressures are likely to continue. "The increases
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EVOLUTION OF EXCHANGE RATE REGIME: IMPACT ON MACRO ECONOMY OF BANGLADESH by Liza Fahmida A project submitted in partial fulfillment of the requirements for the degree of Professional Master in Banking and Finance Examination Committee: Dr. Sundar Venkatesh (Chairperson) Dr. Juthathip Jongwanich Dr. Yuosre Badir Nationality: Bangladeshi Previous Degree: Master in Finance and Banking University of Dhaka Bangladesh Scholarship Donor: Bangladesh Bank Asian Institute of Technology School
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CASE: MAKING NORWICH TOOLS LATHE INVESTMENT DECISIONS PAR T A: PAYBACK PERIOD ACCEPTABILTY OF EACH PROJECT: Lathe A will be rejected because it’s payback period is longer than 4 years maximum expected payback period 4.04years > 4years Lathe B project is accepted because it payback period is less than the 4 year maximum payback period 3.65years < 4 years ---------------------------------------- PART B: NPV &IRR LATHE A NPV & IRR LATHE B NPV & IRR years cash flow PV Factor @13% PV cash
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