drought‚ output and inflation understanding the nature and Causes of food inflation Ramesh Chand The main reason for the current surge in food prices is the supply shock due to the drought in 2009 and the carry-over effect of the low growth of food production in 2008-09. As the frequency of such shocks is expected to rise‚ India needs to have an effective food management strategy to deal with these episodes. It also needs to explore various other options for price stabilisation like maintaining
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How are Automatic Stabilizers Used to Combat Inflation? In today’s economy‚ there are devices present called automatic stabilizers. Automatic stabilizers‚ are mechanisms which aid in the correction of an economic problem without the interference of anyone or anything. They are perhaps most useful to combat demand - pull inflation. Demand - pull inflation‚ is when prices rise because the economy cannot produce enough goods to satiate the economy. An automatic stabilizer‚ that is beneficial
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The National Minimum Wage (NMW) was introduced by the Labour Government on 1 April 1999 as a labour regulation to replace the wages council which had been abolished in 1993 as they were considered inappropriate. It is regulated under the National Minimum Wages At 1998 and the Minimum Wages Regulations 1999 and covers all workers except farm workers’ wages which are regulated by the Agricultural Wages Board. (Rose 2004) defines NMW as a minimum wage any employer must pay its workers as defined
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employment rate on inflation. For this purpose data from 1995 to 2008 has been collected and analyzed through OLS technique. The result of the model shows that GDP growth rate and employment rate adequately affect inflation. With the increase in GDP and employment‚ inflation decreases. INTRODUCTION Inflation is a burning issue in Pakistan. It is generally felt that for several years Pakistan has had a double-digit inflation. The public sector has used a mix of policies to control inflation‚ and it is
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The Harvard Management Company and Inflation Protected Bonds Executive Summary The Harvard Management Company (HMC) was established in 1974 with the goals providing world-class investment management focused solely on generating strong results to support the educational and research objectives of Harvard University. The company’s goals are to correctly measure Harvard University’s financial requirements and to provide investment opportunities that will accurately meet or exceed them with the
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economic instability‚ especially in prices‚ evidenced in the U.S. economy since the mid 1960’s. Inflation in the past few years has not been a major macro economic problem‚ but its spectere‚ as demonstrated by the Fed’s recent increases in interest rates‚ is never for the agendas of financial decision makers. Macro economic instability has necessitated that expectations about the future rate of inflation be taken into consideration in making decision(s) about which capital projects will be undertaken
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The economy of Pakistan is 35th largest in the world. Pakistan‚ with a population of about 16 million people has undergone a remarkable economic growth during last few years‚ but one of the core problem is still Inflation. Inflation effects the different sectors of the economy. Hike in fuel prices restricts our life‚ decreasing the purchasing power. Now a day the prices of Petroleum have increased‚ which means the price of everything would increase likewise. The economist report highlights that in
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Why Balloons Deflate Over Time Balloons are perhaps one of the main choices for party decorations. They come in different forms and sizes‚ and are made of varying materials. Balloons however do not stay inflated for a long period of time even if they are tightly knotted. Some stay inflated for weeks‚ some for days‚ and some even for only a few hours. Have you ever wondered how the air inside the balloon escapes? There are several factors that cause the deflation of a perfectly inflated balloon
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examines the medium term forecasting of inflation rate in Bangladesh. Four important macroeconomic variables which have inter relationship among themselves are considered in the study and three different VEC models are estimated starting from a two-variable model including money supply and CPI‚ and sub-sequentially adding some financial variables such as real GDP and nominal exchange rates. This paper empirically explores the present relationship between inflation and macroeconomic variables in the
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Define inflation. Assume that you live in a simple economy in which only three goods are produced and traded: fish‚ fruit‚ and meat. Suppose that on January 1‚ 2007‚ fish sold for $2.50 per pound‚ meat was $3.00 per pound‚ and fruit was $1.50 per pound. At the end of the year‚ you discover that the catch was low and that fish prices had increased to $5.00 per pound‚ but fruit prices stayed at $1.50 and meat prices had actually fallen to $2.00. Can you say what happened to the overall “price level”
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