DEPARTMENT OF MANAGEMENT AND MARKETING Macroeconomic Assignment Topic: Inflation in the economy and selected measures against inflation TABLE OF CONTENT 1. OVERVIEW OF ECONOMIC PERFORMANCE IN VIETNAM Vietnam joined the World Trade Organization in January 2007 and transformed from a heavily indebted country to a low middle income one in 2010. After opening up the country’s economy to foreign investors‚ its GDP grew by 7.3% on average from 2001 to 2010
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the channels through which inflation affects this relationship are not as much of systematically explored. The effect of inflation occurs through a wide variety of direct and indirect channels. Inflation increases transactions and information costs which directly inhibit economic development. For example‚ economic agents will find planning difficult when inflation makes nominal values uncertain. Firms and individuals will be reluctant to enter contracts when inflation is imperfectly predicted and
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What is Inflation? Relation between Growth and Inflation What is growth? The increase in an economy’s capacity to produce goods and services‚ compared from one period of time to another is known as Economic Growth. It is measured in nominal terms‚ inflation‚ or in real terms‚ which are adjusted for inflation. Economic growth is generally associated with technological changes. The growth of an economy is thought of not only as an increase in productive capacity but also as an improvement in the quality
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2012 www.iiste.org Determinants of Inflation in Bangladesh: An Empirical Investigation 1. 2. Kazi Mostafa Arif1* Munshi Murtoza Ali2 Assistant Professor‚ Department of Economics‚ Islamic University‚ Kushtia 7003‚ Bangladesh. Assistant Professor‚ Department of Politics and Public Administration‚ Islamic University‚ Kushtia 7003‚ Bangladesh. *E-mail of corresponding: arifeconomics@yahoo.com Abstract The study analyzed the major determinants of inflation in Bangladesh using data for the period
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How inflation affects the functions of money? Inflation alludes to a sustained general rise in the prices of goods and services. In other words‚ it means a rise in the level of cost of living. Money is anything that is generally acceptable by the society for the exchange of goods and services. There are different functions of money such as: To act as a medium of exchange –Money is used to trade in goods and services both internally and externally. In this way money eases the exchange of goods within
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into the post 9-11 world. He maintained most of his control of the economy implementing his practice of "inflation targeting". Inflation targeting is a monetary policy tool in which Greenspan would attempt to control the rate of inflation. The Federal Reserve would release to the public a predicted rate of inflation which would be best to grow the economy at a steady rate. If the rate of inflation was growing too quickly‚ the Federal Reserve would raise the short-term interest rates. This raise in
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MACRO-ECONOMICS CHAPTER 4 (MANKIW) INFLATION RATES AND INTEREST RATES: THE FISHER EQUATION NOTES by: Chadia Mathurin Economists differentiate between real and nominal interest rates where: real interest: is defined as the increase or decrease in a consumer’s purchasing power experienced as a result of changes in the interest rate. nominal interest: is defined as the interest payed by the bank. Let: i denote the nominal interest rate r the real interest rate pi ‚ the inflation rate The equation for
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Relationship between Inflation and Interest Rate Interest and inflation are key to investing decisions‚ since they have a direct impact on the investment yield. When prices rise‚ the same unit of a currency is able to buy less. A sustained deterioration in the purchasing power of money is called inflation. Investors aim to preserve the value of their money by opting for investments that generate yields higher than the rate of inflation. In most developed economies‚ banks try to keep the interest
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As the Washington Post states‚ they “...attribute today’s inflation to the consumerization of higher education. That is‚ students pay more in tuition‚ and expect more in return — better service‚ better facilities and better grades” (Rampell). This expectation is unjustified. Instead of attempting to purchase success
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Karl Marx and Fredrick Engels’ Remedy to Industrial Capitalism Karl Marx and Fredrick Engels were considered two of the most perceptive critics and influential thinkers of the nineteenth-century European society. Both Marx and Engels had a more radical opinion of the European period of industrial capitalism and predicted its end of as the citizens united and took control of the corrupt system that demoralized them and treated them equally to machines. Marx argues that class struggles are the
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