Inflation

The main point is about to explain that China and India economic growth are likely to fall sharply, as Lant Pritchett and Larry Summer stated that China and India have been growing super-rapid and has already lasted three times longer than the general episode. This was observed with regard to Japan in 1960s, and it is seen today with regard to China and India. Moreover, the paper point out that to evaluate the growth prospects of an economy is not to look at its past but rather as economies in…

To validate the data, one of the main assumptions of the Classical Linear Regression Model i.e. Multicollinearity was checked by using the correlation matrix. Table 5.2.1 – Correlation Matrix 1 (Pearson, Kendall and Spearman) In the above matrix it can be observed that there is presence of Multicollinearity because of high correlation between, M3, Gold Price and WPI and Index of Industrial Production therefore as a remedial measure the above mentioned variables are removed from the analysis.…

Beck, Thorsten. "Financial development and international trade: Is there a link?" Journal of international Economics 57, no. 1 (2002): 107-131. This paper by Beck focuses on economies that has created budgetary sectors, have a near favorable position in assembling businesses. A two-division display demonstrates the part with vast scale economies benefiting more than the other financial sectors. In nations with elevated amounts of monetary advancement, fabricated fares speak to a higher offer of…

Based on the resource curse thesis, there seems to be an inverse relationship between the abundance natural resources and economic growth. Gelb’s (1988) cross-country economic analysis of oil exporting countries (Algeria, Indonesia, Nigeria, Venezuela, Ecuador and Trinidad and Tobago) was one of the early studies on the negative connection between natural resources wealth and economic development. The studies revealed that windfalls from natural resources during the booms periods of 1974 – 1978…

The Cost-of-Carry Model In the commodity market the Cost of Carry model is used to price the futures and forwards contracts based on the spot price of the traded asset. The cost of carry is all the costs to carry an asset from the present until a certain future period, those are the cost to finance the asset (the interest), the storage costs, the transportation cost, and the insurance costs. The cost of carry model looks at the price of the future or forwardcontract as a function of the spot…

1. What is the difference between micro and macroeconomics? Give an example of a microeconomic phenomenon and an example of a macroeconomic one. A) The difference between micro and macroeconomics is that microeconomics deals with how individuals and firms make decision in the face of scarcity and the impacts of the decision on the market. Hence, microeconomic focus on a part of the economy of a country. While macroeconomics deals with how a nation makes a decision in the face of scarcity and…

1.1) Unemployment rates with regards to general population have decreased by 1%(27,7% to 26,7%) between the 3rd and 4th quarter of 2017. This is due to more jobs being created and more international businesses expanding in South Africa such as Starbucks and Domino’s Pizza. Even though a decline was experienced in the unemployment rate across all age groups, the youth has the highest unemployment rate of 29,7% which is the equivalent of approximately 3,1 million people. 1.2) Social factor: The…

Trade Vanuatu is greatly dependent on its international trade due to its relatively undeveloped industry. The country’s economy is opening as imports are growing and exports (although there has been a strong decline due to the 2008 depression) are also generally on a growing path (see Graph 1). 9 Graph 1: Vanuatu imports and exports growth (in million €) 0 200 400 600 800 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Import ExportImports Imports total up to $242 million, commodities include…

The modern world is reign by excessive advertisement, products, and consumers that are drive to obtain the advertised products. This is how money in the economy flows and makes progress the country by increasing the positive welfare. Consumerism is a social and economical issue derived by the excess of consumption of goods and products that impacts a negative externality in the society. While people consume more and more products they end with earth´s natural resources, pollute, and leaves a…

In this essay the author will discuss the topic of the cycle to work scheme and whether or not this scheme is beneficial. “ The cycle to work scheme is a tax incentive scheme which aims to encourage employees to cycle to and from work” (www.citizeninformation.ie). The cycle to work scheme was announced in the November 2008 budget and has been in operation since 1 January 2009. The basic premise of the cycle to work scheme is to promote healthier journeys to work and to reduce environmental…