Food Inflation In India In recent times‚ food inflation has been perhaps the most challenging problem faced by Indian leaders and policy makers. The trends of inflation of food prices computed on a year on year basis are as shown in fig. 1. Figure 1: Inflation figures for Food Articles‚ Foodgrains‚ Rice and Wheat (Base: 1993-94) Food inflation in India can be estimated by movement of composite food index in WPI. The food index consists of two sub components‚ namely primary food articles and
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“automatically approximates the impact of inflation” is true only if exchange rates are perfectly negatively correlated with differences in national inflation rates. This condition‚ known as purchasing-power parity‚ does not exist here. A quick review of the price level and exchange rate information shows that the difference in inflation between Iceland and the United States was not offset by changes in the dollar value of the kronur. Thus‚ some form of inflation accounting prior to currency translation
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i) Discuss the effects of inflation on consumers in the country. One should wonder how the average wage earner is going to survive in the city with the arbitrary hikes in food prices‚ not only in Kuala Lumpur but word has it that food prices are generally 20 to 30% higher over in East Malaysia. Hawkers and restaurants seem to raise their prices‚ usually citing the oil hikes and its gravy train effect on every thing from higher transportation costs‚ higher labour costs‚ profiteering and essential
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efficiency by A) channeling funds from investors to savers. B) creating inflation. C) channeling funds from savers to investors. D) reducing investment. 2) Well-functioning financial markets promote A) inflation. B) deflation. C) unemployment. D) growth. 3) The price paid for the rental of borrowed funds (usually expressed as a percentage of the rental of $100 per year) is commonly referred to as the A) inflation rate. B) exchange rate. C) interest rate. D) aggregate price level.
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Treasury Bonds‚ Notes‚ Bills: * Bond: 10 years or more * Note: 1 - 10 years * Bill: less than 1 year * Are they risk free? * Yes: US gov’t has largest army and will take stuff to pay its bills * No: Interest rate risk‚ and Inflation Risk * Overall: not risk free‚ but are default risk free Need to value a bond: 1. Coupon 1. Annuity‚ fixed for some period of time 1. Principal Will ask to value separately * If interest rates increase‚ value of bond
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prices negatively affects the economy‚ especially during a recession. America is dependent on the circulation of money‚ if there is poor circulation like there was during the recession‚ the increasing price of steel would lead to inflation. JFK illustrates the risk of inflation by personifying
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Assignment of Fin-2209: Macroeconomics “A case study of Bangladesh- Inflation‚ Unemployment‚ Growth Trend” A Report On Submitted to Saud Ahmed Course Instructor/ Lecturer‚ Department of Finance‚ Faculty of Business Studies Jagannath University‚ Dhaka Submitted by Sultan Ahmed Khan Representative of the group Epimetheus BBA 3rd Batch Department of Finance‚ Faculty of Business Studies Jagannath University‚ Dhaka. Group Name: Epimetheus Group No: Name of the members of the group: Serial No:
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increasing. If the companies increase their employee’s wages‚ they need to increase the price of their products again‚ leading to higher prices in commodities. This interlocking effect is the work of inflation and if a country is not cautious‚ their economy can be severely damaged. In a way‚ inflation affects everyone living in this world and in today’s economy‚ not everyone has the same income and purchasing power. When cost of living becomes too high‚ it would have undesirable effects on us. So
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Name two causes of inflation. Explain how they work. Demand-pull inflation: As the name suggests‚ demand-pull inflation occurs as a result of increasing aggregate demand in the economy. Cost-push inflation: Cost-push inflation occurs as a result of an increase in the costs of production. How can inflation be caused by excess monetary growth? If there is more money in the economy‚ then there will be more spending‚ thus higher aggregate demand. Increases in the money supply result in higher
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Macroeconomics Report “Inflation” Hyper Inflation in Zimbabwe MAHAM TASEER (BS37 3184) UMAIRZIA (BS37 3174) MUTTAYAB MASOOD (BS37 3190) SAAD SHEIKH (VS30 2532) GECO – 202 MACRO ECONOMICS Submitted to: Mr. Nawaz Ahmed 2012 Macroeconomics Report “Inflation” Hyper Inflation in Zimbabwe MAHAM TASEER
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