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What is headline inflation And what is core inflation?
Headline inflation is what's important to the average person. It accounts for the rise in the cost of living. Core inflation, on the other hand, is what's important to economists and the Federal Reserve, who sets monetary policy. Core inflation accounts for the rise in the cost of goods EXCLUDING food and energy prices. Why do economists and the Fed prefer core inflation metrics? Because food and energy prices are much more volatile, and that volatility is often caused by sudden events such as natural disasters or geopolitical unrest. By focusing on non-food, non-energy inflation (core inflation), the Fed strips away temporary "distractions" to focus on the true interplay of supply and demand in the domestic product markets. This supply/demand interplay is crucial in setting sound monetary policy.
What do most businesses and citizens prefer?
Stable economy
What is better Nike dry fit or Under Armour cold fit?
I prefer Drifit better since its more comfortable! DOnt get me wrong under armour is great I prefer Dri Fit!
Why do economists prefer to compare real GDP figures for different years instead of GDP figures?
economists prefer to compare real gdp figures for different years instead of comparing nominal gdp figures. why?
Socially responsible consumers prefer to buy from companies that use what?
Renewable resources
Limitations of reserve bank of India?
1. There exist a Non-Monetized SectorIn many developing countries, there is an existence of non-monetized economy in large extent. People live in rural areas where many of the transactions are of the barter type and not monetary type. Similarly, due to non-monetized sector the progress of commercial banks is not up to the mark. This creates a major bottleneck in the implementation of the monetary policy.2. Excess Non-Banking Financial Institutions (NBFI)As the economy launch itself into a higher orbit of economic growth and development, the financial sector comes up with great speed. As a result many Non-Banking Financial Institutions (NBFIs) come up. These NBFIs also provide credit in the economy. However, the NBFIs do not come under the purview of a monetary policy and thus nullify the effect of a monetary policy.3. Existence of Unorganized Financial MarketsThe financial markets help in implementing the monetary policy. In many developing countries the financial markets especially the money markets are of an unorganized nature and in backward conditions. In many places people like money lenders, traders, and businessman actively take part in money lending. But unfortunately they do not come under the purview of a monetary policy and creates hurdle in the success of a monetary policy.4. Higher Liquidity Hinders Monetary PolicyIn rapidly growing economy the deposit base of many commercial banks is expanded. This creates excess liquidity in the system. Under this circumstances even if the monetary policy increases the CRR or SLR, it dose not deter commercial banks from credit creation. So the existence of excess liquidity due to high deposit base is a hindrance in the way of successful monetary policy.5. Money Not Appearing in an EconomyLarge percentage of money never come in the mainstream economy. Rich people, traders, businessmen and other people prefer to spend rather than to deposit money in the bank. This shadow money is used for buying precious metals like gold, silver, ornaments, land and in speculation. This type of lavish spending give rise to inflationary trend in mainstream economy and the monetary policy fails to control it.6. Time Lag Affects Success of Monetary PolicyThe success of the monetary policy depends on timely implementation of it. However, in many cases unnecessary delay is found in implementation of the monetary policy. Or many times timely directives are not issued by the central bank, then the impact of the monetary policy is wiped out.6. Monetary & Fiscal Policy Lacks CoordinationIn order to attain a maximum of the above objectives it is unnecessary that both the fiscal and monetary policies should go hand in hand. As both these policies are prepared and implemented by two different authorities, there is a possibility of non-coordination between these two policies. This can harm the interest of the overall economic policy.These are major obstacles in implementation of monetary policy. If these factors are controlled or kept within limit, then the monetary policy can give expected results. Thus though the monetary policy suffers from these limitations, still it has an immense significance in influencing the process of economic growth and development.
What kind of policy customer prefer?
Is that a question? Which customer?
Liberals tend to prefer what foreign policy?
Intenational cooperation. ---- I hope
Do Americans prefer a marketplace where the government uses its powers towards direction and control?
No, that is the opposite of free enterprise. Most wish the government would stay out of their business. Americans want to be able to continue to make decisions that are best for themselves as opposed to ridiculous government mandates. In certain situations however, the Federal Reserve Bank of New York may enter the foreign exchange markets as monetary policy.
How much fine of Violation of long term care insurance?
It depends on the policy plans of particular company.For term insurance I prefer the buyonline.aegonreligare.com.
Why does not the ethiopian government make aright policy to get back the doctors who either left Ethiopia or studied abroad and prefer to stay there?
The Ethiopian government has other things to worry about other than a policy to get doctors to come back from abroad.
What is headline inflation And what is core inflation?
Headline inflation is what's important to the average person. It accounts for the rise in the cost of living. Core inflation, on the other hand, is what's important to economists and the Federal Reserve, who sets monetary policy. Core inflation accounts for the rise in the cost of goods EXCLUDING food and energy prices. Why do economists and the Fed prefer core inflation metrics? Because food and energy prices are much more volatile, and that volatility is often caused by sudden events such as natural disasters or geopolitical unrest. By focusing on non-food, non-energy inflation (core inflation), the Fed strips away temporary "distractions" to focus on the true interplay of supply and demand in the domestic product markets. This supply/demand interplay is crucial in setting sound monetary policy.
What present tense of word to prefer?
I prefer you prefer he prefers she prefers it prefers we prefer you prefer they prefer
You prefer cotton they prefer cotton?
we all prefer cotton
What is the simple present of prefer?
The simple present of "prefer" is "prefer." For example, "I prefer coffee over tea."
Which site do you prefer?
I prefer WikiAnswers
Do you prefer travelling by train or travelling by air?
Some prefer air and others prefer train. Personally, I prefer air.
