Inflation rate

This forecasting analysis makes use of a structural model (NEMO), but this model is primarily suited for medium term analysis of the effects of monetary policy on the macroeconomy. Norges Bank’s forecasts for the first few quarters are largely based on current statistics, information from Norges Bank’s regional network and forecasts obtained from a number of short-term statistical and econometric models. The published projections in the monetary policy reports are the result of an overall…

federal fund rates, central banking system, and other operations. However, if something impacts these systems then this can create devastation to Americans and other countries. In the article With Steady Gains in Economic Outlook, Fed Leaves Interest Rate Unchanged, written by Binyamin Appelbaum, the Fed examines how Trump’s presidency can alter the interest rate and how that can affect employment, consumers, inflation, job market, and other factors (Appelbaum). If the federal fund rate remains…

Sky-high cost of living - Adjust the linked exchange rate system in Hong Kong The Consumer Price Index of Hong Kong raises over four times since 1980`s(MTR,2014), which means the cost of living in Hong Kong went up with an exaggerated speed. Cost of living is a general term for the price of goods and services required for maintaining an average level standard of living(Business dictionary,2017). Although high cost of living might be common in the world, the situation of Hong Kong differ from…

unemployment, business cycles, inflation and other economic ills. Keynesian Theory of Money: Keynes reformulated the old Quantity theory of Money that failed to integrate the value theory with the monetary theory. He argues that there exists a rather non-proportional and indirect relationship between quantity theory of money and prices. He formulates the missing link between the in the old theory old money that failed to exert the influence quantity of money on the interest rate, which in turn…

1. Summary of End the Fed “End the Fed” by Ron Paul argues how the federal reserve (Fed) is detrimental to the economy and the nation. Although, the Fed claims that its role is to keep inflation in control, implement a solvent banking system, regulate financial system and also keeps the business cycle in steady state, Ron Paul disagrees on the above mentioned points and argues that the Fed has ironically created more problems than resolving them. By drawing examples from American history,…

The Great Depression consisted of the stock market crash, the failure of people being able to spend and company unable to make investments. This caused a major decline in output to the economy which then cased a greater increase in the unemployment rates for people throughout the world. There are different opinions as to whether Monetary Policy was or wasn’t a direct…

〖Y_t〗^fβ2 〖〖Ag〗_t〗^β3 〖A_t〗^β4 ε_t…………………………..1) Where: X_t= Quantity of horticultural exports in tonnes β_0= Constant β_1-β_4=Regression coefficients R_t= Real exchange rate 〖Y_t〗^f= Foreign income captured by GDP per capita of major trading partners 〖Ag〗_t= Agricultural GDP over the years under study I_t= Real interest rate ε_t= Stochastic disturbance term For estimation purposes, model (1) can be linearized by use of the double-log as follows: LnX=β_0+β_1 Ln〖(R〗_t)+β_2…

that Latin America was much better off before the United States jumped in, and the choices made by a newly elected official were to his benefit, not to the benefit of the citizens. When looking at something very important like the annual GDP growth rates some numbers stuck out to me such as, according to Ocampo (2004) “…between 1950 – 1980 the GDP increased by 5.5 percent a year, which was well in excess of the global average. However, after the changeover to neoliberal policies, we saw a…

of the government’s taxation and spending can influence aggregate demand and the level of economic activity. Why is fiscal policy important and worthy to discuss? Because it stimulates the economic growth in a period of a recession, it can keep inflation low, and it can stabilize economic growth, avoiding the boom or bust in an economic cycle. The current fiscal policy brings US competitiveness a great harm. Fiscal cliff is the combination of the increase in text levy and decrease in…

Labor Statistics reported the jobless rate has spiked up this year, and the number of unemployed workers not employed indicates America’s trend to be back on the road of recovery has faltered. The unemployment rate has soared back up to 19%, which means 10.4 million workers are looking for suitable jobs. Last year in 1937, only 14% of American workers, 7.7 million, were looking for work throughout this country. This is the first time unemployment has increased since the depression hit America…