excessive inflation and other eco objectives etc during booms that reduce competitiveness and living standards. ➢ E.g. during 2002-2008‚ RBA raised cash rate 12 times to 7.25% due to higher levels of inflation caused by the strength of Aust economy and higher global prices. o Draw GRAPH (IMPACT OF MACRO POLICIES) Para 2- • Primary goal of MP is inflation (i.e. maintaining inflation target of 2-3% over the course of the eco cycle.) • MP is particularly suited with fighting inflation as inflation
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Examine the salient features of the Phillips`s Curves. How might elementary textbooks be criticised for writing ‘inflation’ on the vertical axis? Introduction Philips curve‚ named after A.W. Philips‚ has caused many fierce debates in the area of macroeconomics since the World War II. Based on the data of wages and employment in UK from 1861to 1957‚ Phillips concluded that there had been an inverse relationship between the percentage rate of unemployment and the percentage rate of change in
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ordinary least squared methodology were used. The objective to be achieved was to determine if there is some effect of economic transparency on accountability‚ inflation average‚ output gap‚ interest and central bank credibility. Findings – The results highlighted that central banks with greater transparency contribute to decrease inflation rate and interest rate. The findings denote that an increase in the information quality (clarity) implies a significant change in the rate of readjustment of market
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................................……………… 4 5.V Shaped Recession ……………….......................................……………. 5 6.Low Interest Rates Causing a Medium Term Inflation Risk ……….…….. 6 7.Cost-Push Inflation ………………....................................................…….. 7 8.Rapid growth in Asian markets also threatens rising inflation…….……... 8 9.Unemployment ……………................................……………………….... 8 10. Raising interest rates ………………………………………...................... 8 11.Automatic
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Laspeyres Index; later‚ for a Paasche Index. Laspeyres Quantity Index: Paasche Quantity Index: In general‚ Laspeyres and Paasche Price Indexes or Inflation Factors will differ. Their geometric averages are called Fisher Indexes (after Irving Fisher). As a measure of the inflation factor (one plus the inflation rate)‚ a Fisher Price Index is the square root of the product of Laspeyres and Paasche Price Indexes. As a measure of the growth factor (one plus the
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1. The Bureau of Labor Statistics announced that in April 2010‚ of all adult Americans‚ 139‚455‚000 were employed‚ 15‚260‚000 were unemployed‚ and 82‚614‚000 were not in the labor force. Use this information to calculate: a. the adult population = employed+unemployed+not in the labor force=237329000 b. the labor force = employed+unemployed=154715000 c. the labor-force participation rate = (labor force/adult population) x 100= 65.2% d. the unemployment rate = (unemployed/labor force) x 100=
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Analysis about factors affecting Australian Dollar US Dollar exchange rate (2006- Q1 2010) Project Report Final Project in Banking and Finance (FP 238) Raffles College of Higher Education I. Introduction 2.1. Background Most of the country in the world will have export and import and they will use money to pay for it. Each country will have their different unit of money‚ which is called as currency. Currency is a medium that is used in the world to be the media as payments
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supply. 3 a. The cost of inflation arises because high inflation let firms to change their posted prices. It is menu costs. Higher rate of inflation‚ then faster to renew the menu in restaurant. b. The cost of inflation that the inconvenience of living in a world with a changing price level. The economic transactions are changing with inflation‚ and it could influences the value of money. So changing value of money required us correct with the inflation in different times. It is personal
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Factors That Influence Exchange Rates Aside from factors such as interest rates and inflation‚ the exchange rate is one of the most important determinants of a country’s relative level of economic health. Exchange rates play a vital role in a country’s level of trade‚ which is critical to most every free market economy in the world. For this reason‚ exchange rates are among the most watched‚ analyzed and governmentally manipulated economic measures. But exchange rates matter on a smaller scale
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sales‚ Gross Domestic Product (GDP)‚ Inflation rate (CPI)‚ Unemployment rate‚ Consumer Confidence Index‚ US Household Debt. Wal-Mart operations consist of three business segments: Wal-Mart U.S.‚ international and Sam’s club. Wal-Mart domestic operations have more
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