Inflation rate

measures, plans to continue to increase military spending with a planned goal of 1.5% of GDP. However, due to high inflation rates and the poor spending power of the Argentine peso versus the American dollar, real spending on defense is on track to decrease in 2016 by .04%. Argentina is increasing its military spending after decades of record low defense spending, however, inflation leaves them unable to grow their defense budget at the nominal level they had…

and effects of inflation (FRB, 1). In this manner, fiscal policy inadvertently impacts behaviors of monetary policy through the tides it creates in the business economy and economic future. As an example, if federal programs dealing with finances and taxes are predicted to stimulate financial prosperity and growth, the Federal Reserve would look closely at this application of macroeconomic objectives; those continuing to be the stability of prices and and total employment rates, and make the…

Bernie Sanders is a sassy old man and enemy to Donald Trump, a headstrong and unapologetic democrat, and a favorite among millennials. In 2016, he ran for president and competed for the coveted democratic nomination against the now-president Donald Trump, which he lost to Hillary Clinton. Being a 75 year old man who repels nearly every right wing associated person, it is at first confusing as to why so many young voters were attracted to him until his educational platform is brought forward.…

services and, therefore, can influence demand and supply. For instance, the organisation will have more expense if there is a higher inflation rate and to hire skilled employees the company may have a strategic plan like boost the salaries if unemployment level is low (Robbins et al. 2013, p 35). Another example is the demand for a loan will decline if the interest rate is higher (Robbins et al. 2013, p 35). Therefore, the issues may affect economic conditions of an…

cent devaluation was a token gesture” and he “would not rule out further downward moves in the future”. Ajith Nivard Cabraal, governor of the central bank, confirmed the devaluation would go through on Tuesday – the central bank controls exchange rate movement within a trading band. The rupee is currently trading at Rs110.39 against the dollar. The devaluation is sure to please the IMF, which in early September remarked that non-borrowed reserves – those not including IMF funds or foreign…

relatively small margin. By 1989, the new Governor of the bank of Japan became concerned that the economy was threatened by inflation. Conscious of the fact that past episodes of inflation in the country (post-WW2) had led to an inflation of a 20-fold increase in prices, Japan began to tighten the monetary policy that it had eased not 5 years ago by hiking interest rates. This however seems to have little or no impact on the asset prices, which continued to appreciate until the early 1990s. The…

Interest rates have stayed at the same relatively low rate for years and can be beneficial in many ways. For instance, they make cheaper borrowing costs and mortgage interest payments. This in turn encourages spending and investment and leads to higher aggregate demand. However these advantages do come with disadvantages. Effects such as a reduction in the incentive to save as well as a depreciated exchange rate. In other words, a low interest rate has its perks but is likely to be too good to…

Interest rates in the US stood at just 1 per cent in 2003 which, in fact, was the largest deviation since the 1970s, however it is considered to be below 0% in real rate terms i.e including the effects of inflation for 31 months (October 2002 to APril 2005). This ensured that the 2001 recession was shallow and short-lived, but it sowed the seeds of the global recession…

Introduction In 1970, industrialized countries entered a period of structural crisis caused by disproportions in the development of certain spheres and sectors of the economy. The crisis caused the loose of capital from industries with rising costs, forcing them to seek ways to modernize them. Especially acute situation was created in energy-intensive and material-intensive industries, for example, metallurgy. Since the middle of 1970', there were several structural crises and the…

It wasn’t domestic monetary policy: it was pent up frustration due to industries being uncompetitive internationally. Suppressed inflation didn’t help either. For other countries, it was hovering between fixed exchange rates, capital mobility, and having to revalue currencies in order to help domestic industries (Wellhausen 10-7-14). Then came the issue of the Dollar overhand. The Dollar was the world’s main reserve currency:…