Inflation

Ecuador’s economic crisis was extensive, but the move to dollarization reduced the inflation rate significantly from 96.1% in 2001 to 3.76% in 2015. With a lower inflation rate came an expectation of higher investment and a faster rate of economic growth. Full dollarization also benefits Ecuador by eliminating the exchange rate risk which offers advantages in the exporting and…

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…

effects which means that it is more difficult for the entrepreneurs to get support from private and corporate investment. More and more evidences indicate the persistence of elevated inflation which will also negatively impact on Indian business environment, such as the currency depreciation, the price and cost inflation. For the Indian labour force, because of the economic growth declining and large numbers of labour supply, the employment scenario will remain weak. To the entrepreneur, the…

economic policy to minimize the effect of the crisis. The decision of the Nigerian government to peg the naira after the fall of oil prices in 2014 was heavily influenced by past Nigerian attitudes toward the IMF, and while the peg did help to keep inflation at a lower level than other oil exporting countries, the strict control of the naira failed to address the deeper structural issue of lack of diversification in the Nigerian economy. In 2014 oil prices around the world fell due to increased…

gap between the rich and the poor, and increasing the consumers purchasing power. However, there are also consequences when it 's increased. Raising the minimum wage increases unemployment, decreasing the productivity of businesses, and increases inflation, which can possibly lead to hyperinflation. Minimum wage increases one’s power to afford goods and services. This…

Macroeconomics Assignment Name Institution Macroeconomic Assignment Question 1 (a) A reduction in interest rates is an expansionary move in the sense that it makes borrowing cheaper. A decrease in interest rates, therefore, will lead to an increase in investment but in the process leading to a reduction in the levels of saving since there will be a reduction in the incentive to save. The effects of this action will affect both the consumer and the producer as follows: The Consumer:…

slow but accelerated growth, consumer expectations will continue to affect demand. The economy’s performance in the next year will also depend on the 2012 election, what Congress and the administration do, unemployment rates, interest rates, and inflation. Expectations are personal feelings of confidence. Despite the improving trend, economic confidence has not recovered fully to the same levels reported in 2009. Going forward the question still remains, will the current increasing consumer…

expansion phase. Contraction is the opposite of expansion, meaning a downward spiral in the economy. Finally, trough is the rock bottom of the contraction phase. (Pirayoff 2004) It is important for Ed to understand that economic activities like Inflation and deflation can affect the Business cycle and the GDP, which in turn can affect the way the market responds and the way banks loan money to small businesses. Since Ed is thinking about purchasing four (4) gas stations, he will more than…

Every month the US Bureau of Labor Statistic (BLS) announces the value of unemployment rate for the previous month. The rate is a key measurement of how the economy is doing, the announcement is widely watched and if the unemployment rate is different from what the financial market expects, there will be large movement in those markets. Therefore, it is important to know how the Bureau of Labor Statistic works with the unemployment rate. Measuring Unemployment There are data of unemployment…

India as a developing country has a high inflation rate and a high interest rate. The inflation has been taking place due to an increase in demand of products without an increase in the supply- as India imports much of their produce, the limitations put up upon the amount of produce they purchase and the limitation of the produce they can afford to purchase from their weak currency has made the inflation increase and decrease drastically over the years. The decreased amount of supply that…