Inflation rate

not been growing as fast as the citizen’s hope. Gross Domestic Product or GDP has increased in the third quarter of 2015 at an inflation –adjusted annual rate of 2.1 %, after an increase of 3.9 % in the previous quarter according to the Bureau of Economic Analysis. Expressing at an annual average rate of 2.2 % since the recession GDP is still below the average growth rate of the U.S. which is about 3 %. Being at a steady 2.2% GDP is not far from finally being potential GDP. One of the…

money markets are also used by the central banks to set short term interest rates, at slightly better interest…

objective: We are interested in the economy as a whole and how we can adjust dollar values for the economy as a whole for inflation (rather than from state to state…) For example, back in 1938 the Federal Government established the minimum wage at $.25 an hour, and today the federal minimum wage is $5.15. My question to you is: has the minimum wage kept pace with inflation? We can answer this question by figuring out one of two…

The Forecasting for the June 15th financial instruments of the S&P 500, 10 year T-Notes (yield), the gold price, the oil (WTI), the unemployment rate, and the Euro. My reasoning for these instruments was a mix between guessing and little economic reasoning. Out of the 6 financial instruments I was closest to 10 year T-Notes (yield), and the oil (WTI). While the other four instruments I was either in the right direction or the market went in the opposite of what I predicted. On May 18th the S&P…

Based on review of the summary issued on February 1, 2017 it is apparent that the labor market has strengthened noted by the recent low unemployment rate and rise in consumer spending. Although inflation has also increased it still appears to be below the 2% long term target, as such the FOMC will continue to support maximum employment and price stability by making gradual adjustments to the monetary policy. Going forward the…

reported that the Federal Reserve is not going to raise the key interest rate, as previously thought. In December of last year, Janet Yellen, leader of the Fed’s committee, forecasted a 2.4% increase in 2016. She also stated that the economy would raise its rates four times. But as of today, the Fed’s now estimate two rate hikes for the remainder or the year, and a 2.2% growth rather than 2.4%. Yellen also stated that any rates in the future will be gradual in accordance to the slowdown and…

a change in the quantity of money may or may not affect prices. Actually, the changes in supply of money and prices are seen via their impact on the rate of interest, level of investment, output, employment and income. In fact, Keynes’ theory provides causal mechanism by which a change in quantity of money influences interest rate, and interest rate induces investment while investment leads to a multiplier effect on income, output and employment. The multiplier effect may lead to a change in…

raise a family off of. If minimum wage were to be raised to $10.10 in today’s world, history would unavoidably repeat itself. As time has gone on, minimum wage has been raised to this date twenty-two times from the original $0.25 set in 1938. Inflation rates probably were not thought about at the time because the economy was doing well and there were no beginning intentions to raise the wage again. In…

personal income, and disposable personal income. When thinking about GDP, economists need to take inflation into account. Inflation (PG. 342) is a prolonged rise in the general price level of goods and services. Every month, the government measures…

influence in the inflation as well. In the knowledge economy times, due to the adoption of new technology, the labor productivity is improved, the labor cost is reduced. The use of new materials and new energy, the production cost is reduced, too. As a result, the phenomenon of economic appeared that the economic growth and price are not synchronized. The prosperity of virtual economy weakens the interactive relationship between money supply and inflation. Friedman argues that "inflation in any…