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
Premium Inflation
Inflation targeting Lecture 11 Objectives to explain the concept of inflation targeting; to see how is implemented inflation targeting; to identify the role of credibility and transparency on the monetary policy efficiency. 23.05.2012 2 Inflation targeting Brief history Canada – 1991 UK –1992 Finland – 1993 Sweden – 1993 Spain – 1994 Australia – 1994 Chile – 1991 Israel – 1992 Peru – 1994 Poland – 1998 Czech Rep. – 1998 Romania - 2005 New Zeeland - 1990 23.05.2012
Premium Inflation Central bank
Editorial Inflation‚ Employment and Money by Fred E. Foldvary‚ Senior Editor The economy of the United States is booming‚ and wages are starting to rise. Many economists fear that wage increases will push prices up‚ and that this inflation should be stopped. The way inflation is typically dealt with is to raise interest rates to reduce investment‚ slow down the growth of the economy‚ and so hold down that nasty inflation. If that reduces
Premium Inflation Monetary policy Central bank
Inflation in Russia Inflation in Russia is characterized by the contrast. The most striking example - unreasonably high growth rate of inflation in the medium of the poor and reduce the cost of living for the wealthy strata of the population. Poor in Russia is much more than the rich. Poor mainly acquire essential goods and the high demand for them. Because of this‚ their prices are rising faster and more intense than for other goods. As a result‚ the poor are gradually becoming poorer and the rich
Premium Inflation Poverty Cost
Inflation Facts 1. In economics‚ inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. 2. As inflation rises‚ every dollar will buy a smaller percentage of a good. For example‚ if the inflation rate is 2%‚ then a $1 pack of gum will cost $1.02 in a year. 3. A dollar from 1950 is now worth only $0.12 4. The term “inflation” is from the Latin term inflare‚ meaning to “blow up or inflate‚” and it was first used in a monetary sense
Premium Inflation Money
Inflation in Bolivia is at 7.18%‚ making the country fourth among the countries of its region. The cost of food products increased the most and‚ according to analyses‚ the ever growing demand from China and low production due to climactic conditions also influenced these annual numbers (Prensa‚ 2011).International analysts point at the Bolivian gasolinazo as the factor that increased inflation to 7.18%‚ way above the country’s initial inflation rate of 4.5% at the beginning of the year 2010 (Prensa
Premium Inflation Monetary policy Interest rate
Inflation‚ a short explanation In the world of finance phrases like mortgage backed security‚ prime rate‚ speculation and inflation get thrown around a lot yet most people don’t have a clue what it all means. After more than three centuries of evolution even the most knowledgeable can’t wrap their head around the many ways the U.S. economy works and why it sometimes doesn’t. In the next few pages I hope to explain only one of these very complicated concepts‚ that of inflation. Inflation‚ in economic
Premium Inflation
area‚ weak output growth and huge fall in inflation‚ causing huge possibility to fall below targeted level lesser than 2.4%. Several factors could be taken into account to affect the inflation level in the future‚ such as‚ pace of demand recovery associated with supply movements‚ spare capacity weighs on costs and prices‚ change in exchange rate and path of commodity prices. There are several judgements made by the Committee regarding on the inflation levels such as projections on rise of GDP in
Premium Macroeconomics Economic growth Inflation
The Century of Inflation The Twentieth century may be remembered as the century of excess. In every area‚ more things were done in the Twentieth century than in any other century in history‚ and in many cases‚ more than in all previous centuries combined. The Twentieth century saw some of the most destructive wars in history‚ the development of the Atomic Bomb‚ the beginning of air and space travel‚ the colonization and decolonization of the Third World‚ the rise and fall of Communism‚
Premium Inflation
1. Describe the trends in unemployment and inflation The number of people out of work fell by 14‚000 to 2.5 million in the three months to December 2012 (ONS).The unemployment rate was 7.8%‚ of the economically active population‚ down 0.1% on July to September 2012. A few months after the start of the recession in 2008‚ unemployment started to rise sharply. When the global financial crisis hit‚ the unemployment rate was a little over 5% or 1.6 million. Towards the end of 2009‚ with the UK coming
Premium Inflation Economics Unemployment