Inflation

Why is the USD weakening simultaneously with the economic skyrocketing? The artificial disappointment with soaring inflation helps US producers to export their goods cheaper The Big Mac Index indicates the inconvenience which causes the high US Dollar Let's imagine a currency which has a great economy behind it, the economy is doing well, the unemployment rate is at the 16-year low level, the local stock market is soaring to record highs and the central bank has hiked the interest rates thrice…

than 0.1 percent. Minimum wage raises pose no inflationary threat. The potential minimum wage’s effect on inflation would be raise the rate of inflation by less than 0.1 percent. This would raise the average annual inflation rate of about 2.6 percent to just about 2.7 percent. This change is so minuscule that the rate is effectively unchanged by the wage increase. The potential impact on inflation that this poses is smaller than the margin of error for the Department of Labor’s estimate of…

WASHINGTON — The Republicans said the Federal Reserve was secretive, ineffective and out of touch with the economic realities of ordinary Americans. The Democrats showered its policies with encomiums like “herculean.” And those were just the opening statements on Wednesday, as the Fed’s chairwoman, Janet L. Yellen, began two days of biannual testimony on Capitol Hill. Ms. Yellen functions as the nation’s economic weatherwoman, and on Wednesday, she sounded more worried than at her last public…

The Political and Economic Thought Some basic training in economics is important because it could assist an individual to understand the nature of the world in which they live in. This is why the economics professor and her assistant Eveline Adomait and Richard Maranta have written the book Dinner Party Economics to explore the various political and socioeconomic thoughts that affect our daily lives (Eveline & Richard, 2013). The focus will be on Chapters 6 and 7 where the authors discuss about…

Inflation is an increase in the price you pay for goods, but can also be seen as a decline in the purchasing power of money. There are two sides of inflation “price inflation and monetary inflation (McMahon, 2010). Price inflation is when prices rise or it takes more money to purchase the same item as before. Monetary inflation is an increase in the supply of money. When the supply of money increases, currency…

hour. How much is that little bit extra money actually costing these people? More than the people battling for the raise even realize. There are reasons why a minimum wage exists. It is a price floor as to maintain a stable economy, helps prevent inflation, and increases job availability. If the minimum wage is increased, then society will see significant negative impacts on daily life because increasing the amount earned per hour doesn’t mean having more value. In economics, a “price floor…

In the reading of Minimum wage and magical thinking he discusses that raising the minimum wage would have a negative impact and would actually hurt those that it is supposed to help and I would agree. Raising the minimum wage would cause inflation to rise, thus basically canceling out what it was intended to do and making the US dollar worth less. Secondly, minimum wage increase would cause the price of goods to rise and then less people will be buying so, then you are paying employees more…

living a decent life increases, the minimum wage should increase as well. Minimum wage should be raised slowly to help the people in need. It is extremely hard to support yourself minimum wage in today’s economy. It has not been keeping up with the inflation over the years. To have a minimum wage that hinders you from surviving is unethical. It is unfair to have a wage that low…

A CASE OF CLASSICAL AND KEYNESIAN MODELS 2 A Case of Classical and Keynesian Models, Unemployment and New Developments In this essay we would try to elaborate on the macroeconomic ideas arising out of classical and Keynesian schools of thought and how each thought-process in similar and, at the same time, different from each other. We would also describe how both though-processes try to address the problem of unemployment facing an…

• Nominal exchange rate The nominal exchange rate is the value of one currency that can be exchanged in terms of another currency, that is, how much domestic currency is needed in order to purchase a foreign currency or vice-versa. For example, assume that 1 US Dollar costs Rs 35. The nominal exchange rate can be expressed in the following ways: 1 US Dollar = Rs 35, or 1 Mauritian rupee = 0.029 US Dollar A decrease in the Mauritian rupee towards the US Dollar is called an appreciation of the…