IOSR Journal of Business and Management (IOSR-JBM)
... government spending has often resulted in deficits. Persistent government budget deficits and the resultant budgeoning of public debts have assumed serious concerns in developed, transitional and developing countries (Oladipo and Akingbola, 2011). In Nigeria, the bloating of government bureaucracy, ...
... government spending has often resulted in deficits. Persistent government budget deficits and the resultant budgeoning of public debts have assumed serious concerns in developed, transitional and developing countries (Oladipo and Akingbola, 2011). In Nigeria, the bloating of government bureaucracy, ...
The Great Inflation in the United States and the United Kingdom
... very marked rise in costs resulting mainly from the fast rise in money wages…” (EPR, January 1971, p. 6.) “A higher level of pay settlements was much the most important factor in the faster rise of costs and prices during 1970…” (EPR, May 1971, p. 5.) “The slow rise in the prices of basic materials ...
... very marked rise in costs resulting mainly from the fast rise in money wages…” (EPR, January 1971, p. 6.) “A higher level of pay settlements was much the most important factor in the faster rise of costs and prices during 1970…” (EPR, May 1971, p. 5.) “The slow rise in the prices of basic materials ...
MACROECONOMICS Section I
... Which of the following can be concluded about the consumer price index (CPI) for this individual from 1993 to 1994? (A) It remained unchanged. (B) it decreased by 25%. (C) It decreased by 20%. (D) It increased by 20%. (E) It increased by 25%. 49. If an economy's aggregate supply curve is upward slop ...
... Which of the following can be concluded about the consumer price index (CPI) for this individual from 1993 to 1994? (A) It remained unchanged. (B) it decreased by 25%. (C) It decreased by 20%. (D) It increased by 20%. (E) It increased by 25%. 49. If an economy's aggregate supply curve is upward slop ...
Inflation and economic growth in Rwanda
... Monetary authorities in Rwanda have been targeting an inflation level of around 5% for economic policy purposes. Was this inflation target the most appropriate for economic growth? Recent studies have demonstrated that, depending on the structure and the level of development of the economy, inflatio ...
... Monetary authorities in Rwanda have been targeting an inflation level of around 5% for economic policy purposes. Was this inflation target the most appropriate for economic growth? Recent studies have demonstrated that, depending on the structure and the level of development of the economy, inflatio ...
Empirical Evidence for Germany
... producer price data sets, respectively. These results stand in contrast to the findings of, e.g., Holly (1997) who finds for Japanese producer prices that the skewness of the distribution of relative price changes does not exert a strong impact on the average inflation rate. Bryan and Cecchetti (199 ...
... producer price data sets, respectively. These results stand in contrast to the findings of, e.g., Holly (1997) who finds for Japanese producer prices that the skewness of the distribution of relative price changes does not exert a strong impact on the average inflation rate. Bryan and Cecchetti (199 ...
Objectives for Chapter 23: The Basic Theory of Monetarism Chapter
... real interest rates. Money pays less interest than any other form of saving. Assume that there are only two forms of holding wealth: checking accounts and Treasury Bills. Checking accounts pay 1% interest. If Treasury Bills pay 10% interest, where do you wish to hold your wealth? Of course, the answ ...
... real interest rates. Money pays less interest than any other form of saving. Assume that there are only two forms of holding wealth: checking accounts and Treasury Bills. Checking accounts pay 1% interest. If Treasury Bills pay 10% interest, where do you wish to hold your wealth? Of course, the answ ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... James R. Hines Jr. is professor of business economics at the University of Michigan Business School and a research associate of the National Bureau of Economic Research. The authors thank Kathryn Dominguez, Martin Feldstein, Jeffrey Frankel, Erzo Luttmer, James Poterba, and Shang-Jin Wei for helpful ...
... James R. Hines Jr. is professor of business economics at the University of Michigan Business School and a research associate of the National Bureau of Economic Research. The authors thank Kathryn Dominguez, Martin Feldstein, Jeffrey Frankel, Erzo Luttmer, James Poterba, and Shang-Jin Wei for helpful ...
Inflation Persistence: Alternative Interpretations and Policy Implications
... evolution of inflation persistence across countries and historical monetary regimes and observes that the degree of inflation persistence appears to have varied significantly and to have been lower in periods in which there was a clearly defined nominal anchor. To understand the source of inflation ...
... evolution of inflation persistence across countries and historical monetary regimes and observes that the degree of inflation persistence appears to have varied significantly and to have been lower in periods in which there was a clearly defined nominal anchor. To understand the source of inflation ...
This PDF is a selection from a published volume
... explain the observed CPI-based real appreciations. Only 33-72 percent of it can be attributed to productivity growth induced internal real exchange rate movements; the rest can be assigned to the external real exchange rate. Egert (2002, Table 9) also reveals that productivity induced appreciation o ...
... explain the observed CPI-based real appreciations. Only 33-72 percent of it can be attributed to productivity growth induced internal real exchange rate movements; the rest can be assigned to the external real exchange rate. Egert (2002, Table 9) also reveals that productivity induced appreciation o ...
2- money - Macroeconomics@Lourdes College
... with which the values of all other goods and services are expressed or quoted; (b) Money serves a medium of exchange which implies that money is an accepted means of payment for goods and services; (c) Money serves as a store of value (and a standard of deferred payment). This means that money can b ...
... with which the values of all other goods and services are expressed or quoted; (b) Money serves a medium of exchange which implies that money is an accepted means of payment for goods and services; (c) Money serves as a store of value (and a standard of deferred payment). This means that money can b ...
4. The Goods Market
... buildings in central business districts, the price of which is trending up over time. Therefore, the unusually large long run elasticity obtained in the estimation may reflect the methodology underlying the ABS data construction which may result in an asset price component being included. The signif ...
... buildings in central business districts, the price of which is trending up over time. Therefore, the unusually large long run elasticity obtained in the estimation may reflect the methodology underlying the ABS data construction which may result in an asset price component being included. The signif ...
Real Effects of Inflation through the Redistribution
... makes aggregate labor supply decline by up to 1.5 percent in the decade after the inflation episode. The second effect increases the capital stock up to 0.8 percent above trend three decades after the inflation episode. The net result is a decline in output over the first three decades after the sho ...
... makes aggregate labor supply decline by up to 1.5 percent in the decade after the inflation episode. The second effect increases the capital stock up to 0.8 percent above trend three decades after the inflation episode. The net result is a decline in output over the first three decades after the sho ...
Economic Fluctuations, Unemployment, and Inflation
... increased at an average annual rate of only 1.6%. • In contrast, the inflation rate averaged 9.2% from 1973 to 1981, reaching double-digits during several years. • Since 1982, the average rate of inflation has been lower (3.1% from 1983-2009) and more stable. Jump to first page ...
... increased at an average annual rate of only 1.6%. • In contrast, the inflation rate averaged 9.2% from 1973 to 1981, reaching double-digits during several years. • Since 1982, the average rate of inflation has been lower (3.1% from 1983-2009) and more stable. Jump to first page ...
THE HISTORY OF STAGFLATION: A REVIEW OF IRANIAN
... Broadly speaking, the neo-classical economic theory states that stagflation is caused by the failure of effective allocation in the goods market, mainly as a result of extreme interventions from the government. This approach rejects the impact of monetary policies on stagflation occurrence, instead ...
... Broadly speaking, the neo-classical economic theory states that stagflation is caused by the failure of effective allocation in the goods market, mainly as a result of extreme interventions from the government. This approach rejects the impact of monetary policies on stagflation occurrence, instead ...
Inflation Scares and Forecast-Based Monetary Policy
... for policy decisions in non-inflation-targeting central banks such as the Federal Reserve and the European Central Bank. Why do inflation expectations receive so much attention at central banks? One reason is that policymakers at the Federal Reserve and at central banks in many other nations have lo ...
... for policy decisions in non-inflation-targeting central banks such as the Federal Reserve and the European Central Bank. Why do inflation expectations receive so much attention at central banks? One reason is that policymakers at the Federal Reserve and at central banks in many other nations have lo ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research Volume Title: Inflation: Causes and Effects
... Readjustments in the dollar price of the resource unit could be the responsibility of the Federal Reserve Board just as the quantity of money is under the board's discretion in the present system. Much the same considerations would underlie the setting of the dollar price as permeate monetary policy ...
... Readjustments in the dollar price of the resource unit could be the responsibility of the Federal Reserve Board just as the quantity of money is under the board's discretion in the present system. Much the same considerations would underlie the setting of the dollar price as permeate monetary policy ...
NBER WORKING PAPER SERIES FISCAL PREREQUISITES FOR A VIABLE A NON-TECHNICAL
... ratio. Both the distortion,ary nature of real world taxes and the existence of political and administrative constraints on the ability indefinitely to raise taxes one—for—one with pre—tax income, suggest that the case of the sustainable explosive net public debt—6DP ratio is an example of economics ...
... ratio. Both the distortion,ary nature of real world taxes and the existence of political and administrative constraints on the ability indefinitely to raise taxes one—for—one with pre—tax income, suggest that the case of the sustainable explosive net public debt—6DP ratio is an example of economics ...
No. 6 / May 2016
... labour cost side in these sectors. On the other, this may well be explained by the inability to raise wages as profit margins are low – meaning that prices are set to rise at outstripping paces once the situation normalises. Wage growth in the public sector still constrains labour compensation in th ...
... labour cost side in these sectors. On the other, this may well be explained by the inability to raise wages as profit margins are low – meaning that prices are set to rise at outstripping paces once the situation normalises. Wage growth in the public sector still constrains labour compensation in th ...
Inflation
In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.When the price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time. The opposite of inflation is deflation.Inflation affects an economy in various ways, both positive and negative. Negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future.Inflation also has positive effects: Fundamentally, inflation gives everyone an incentive to spend and invest, because if they don't, their money will be worth less in the future. This increase in spending and investment can benefit the economy. However it may also lead to sub-optimal use of resources. Inflation reduces the real burden of debt, both public and private. If you have a fixed-rate mortgage on your house, your salary is likely to increase over time due to wage inflation, but your mortgage payment will stay the same. Over time, your mortgage payment will become a smaller percentage of your earnings, which means that you will have more money to spend. Inflation keeps nominal interest rates above zero, so that central banks can reduce interest rates, when necessary, to stimulate the economy. Inflation reduces unemployment to the extent that unemployment is caused by nominal wage rigidity. When demand for labor falls but nominal wages do not, as typically occurs during a recession, the supply and demand for labor cannot reach equilibrium, and unemployment results. By reducing the real value of a given nominal wage, inflation increases the demand for labor, and therefore reduces unemployment.Economists generally believe that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply. However, money supply growth does not necessarily cause inflation. Some economists maintain that under the conditions of a liquidity trap, large monetary injections are like ""pushing on a string"". Views on which factors determine low to moderate rates of inflation are more varied. Low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities. However, the consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth.Today, most economists favor a low and steady rate of inflation. Low (as opposed to zero or negative) inflation reduces the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduces the risk that a liquidity trap prevents monetary policy from stabilizing the economy. The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Generally, these monetary authorities are the central banks that control monetary policy through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements.