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Inflation
A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.
1,474 Questions
How central bank can play a role to control the inflation of the economy in?
In simple words, Inflation means price rise and erosion in value of money over a period of time.
Simply said, it is the increase in prices of products. It doesn't necessarily have to be a negative thing. It results in decline in value of goods over a period of time. Eg. A thing that might have costed Rs. 10 five years back would cost Rs. 15 now due to inflation. Hence, we end up paying more for the same thing (same quantity).
Inflation is controlled by the Central Bank of an economy via its monetary policy stance and interest rates.
They won't be able to develop, (ex. Japan is an industrial power, but its paucity of natural resources will eventually make Japan no longer a country. The Japanese will be sent off to another country, and a war will begin.) This may sound unbelievable but trust me, i am an exfilous genius.
Why people invest where their is more risk?
Return on investment is directly related to risk of investment--the riskier an investment is, the more you have to pay people for making it.
How does inflation effect the job market?
In most economies, there are two types of inflation - price inflation, and monetary inflation. Monetary inflation is caused by the government issuing more money than can be absorbed by the economy, leading to higher prices, but only in relative terms. An example would be the proposed $300 "gift" from from President Bush to the American people. It is a false improvement. For example, in post-WW I Germany there were so many deutschmarks in circulation that you needed a wheelbarrow full to buy a loaf of bread. Price inflation happens when the supply of a good or service is restricted without a corresonding drop in demand, so things get more expensive. When "things" are more expensive, some people buy less of them, if possible. Classic inflation affects the job market only in the sense that employers may have to pay higher salaries to attract the same level of talent as before - there is usually no overriding reason to reduce or increase employment levels during 'normal' inflationary periods. Most economists believe that a 1% to 2% inflation rate during a growing economy is normal as markets adjust to fluctuating demand. A RECESSION, on the other hand, is a REDUCTION in the amount of money flowing in an economy, and can have a noticeable negative effect on the job market - less money = less buying = less production = less need for workers.
3 percent
the decline of prices due to insufficient money supply A+
How does congress go about regulating the value of money?
(a VERY simplified answer) By regulating the supply of money in circulation and the interest rates for borrowing from the US Treasury.
How can inflation negatively affect real wages?
It simply means that if inflation increases and real wages stay the same, it will take you more money to buy the same amount of goods and services.
Inflation affects real wages because it reduces your purchasing power, assuming your real wage stays the same.
Why is demand pull inflation considered good?
It would imply that there is no recessionary state present in the current economy. For demand pull inflation is essentially too much spending for too little goods. With "too much spending" Aggregate Demand would be at or above the full employment rate.
E-Commerce trade cycle details?
1. Finding goods or services appropriate to therequirement and agreeing the terms of trade.
2.Placing the order, taking delivery andmaking payment.
3.After-sale activities such as Warranties,services etc.
What is the conclusion of inflation?
As prices rise, inflation also increases; supply increases and demands of people decrease because of high prices.
Is early retirement allowed while collecting unemployment?
Receiving unemployment benefits require that you are able, willing, and actively seeking full time employment which, if you were retiring, violates those requirements. Therefore the benefits would cease.
Ok, this is my own question. This is what I came up with. can anyone confirm or correct?
Maturity r = RR + IP
1-YEAR 2.25% = 1.5% + X
2.25% - 1.5% = .75%
James has purchased a 10-year bond that pays a 50 coupon If interest rates go up what happens?
the bond PRICE will go DOWN
How do you control inflation in Nigeria?
Monetary Policy
With growth of 3.8%, demand in the economy could be growing faster than capacity can grow to meet it. This leads to inflationary pressures. We can term this demand pull inflation. Therefore, reducing the growth of Aggregate demand, should reduce inflationary pressures.
The Central bank could increase interest rates. Higher rates make borrowing more expensive and saving more attractive. This should lead to lower growth in consumer spending and investment. A higher interest rate should also lead to higher exchange rate, which helps to reduce inflationary pressure by
- making imports cheaper.
- Reducing demand for exports and
- Increasing incentive for exporters to cut costs.
The government can increase taxes (such as income tax and VAT) and cut spending. This improves the budget situation and helps to reduce demand in the economy.
Both these policies reduce inflation by reducing growth of Aggregate Demand. In Nigeria's case, the economy seems to be growing reasonably strongly. Therefore, we can reduce inflationary pressures without causing a recession.
If Nigeria had high inflation and negative growth, then reduce aggregate demand would be more unpalatable as reducing inflation would lead to lower output and higher unemployment. They could still reduce inflation, but, it would be much more damaging to the economy.
What would Joe Kennedy be worth today with inflation?
Assuming that you are speaking of President Kennedy's father he was worth around $600 million at the time of his death in 1969. That's the eqivilent of around $3.3 billion dollars in 2007 money.
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- NOVANET ANSWER- applying pressure on companies that imposed steep price increases.
A similar thing happend in France some years ago. The replaced the Franc. For a while people talked of old francs and new francs, and while the old coinage remained briefly and you could use it exactly has previously alongside the new design "new franc" until they were withdrawn. Each old France retained its old value.
True.
Is inflation good for economic growth or not?
On my view, inflation is not good simply because normally it halt GDP, as a result the economy will not grow as there is a decline in GDP..In addition there will be no development taking place......BY: Hamunyela Oiva ,,a student UNAM, Windhoek..
What is the value of a 1972 Eisenhower dollar?
If it's from circulation and made of copper-nickel, it's worth face value. If it's uncirculated, maybe $3 or $4.
If it's a special 40%-silver collector's coin in its original package, it would retail for about $4.50 using the price of silver as of 09/2008.
AnswerUnless it is a proof coin or high-grade uncirculated certified by one of the major grading services, it is worth a dollar but I have seen some well-worn ones priced as high as $3 at flea markets.The value of a 1972 "Ike" dollar is worth around one-ten dollars, depending on its condition. The silver ones that the mint made for collectors is worth around $4.44 as of June 15th, 2009, just for the silver in it. The silver Ike dollars are worth about 4.50 plus a collectors premium, which makes it worth around $8.00.
"FG""FG" is the designer's initials and appears on the front and back of all the Ike dollars except the bicentennial reverse design.NOTE:
The 1972 Eisenhower dollar has been identified to have three different variations (types) noted - Type 1, 2 and 3. Types 1 and 3 currently (February 2013) are valued at around $5 in MS63 condition. Type 2 in MS63 condition is valued at around $67. Search the Internet for "Eisenhower 1972 half dollar type" to learn how to identify the differences.
This is a Eisenhower dollar. None of them regardless of date or mintmark, struck for general circulation have any silver and most are not more than face value. For coins dated 1971 & 1972 uncirculated examples may have a little more value due to the fact dollar coins were not included in Uncirculated Mint sets sold in 1971 & 1972. In general, only proof and uncirculated collectors coins sold from the Mint have premiums.
NOTE 2:
While it is true that the Eisenhower dollars contain no silver, and cannot be redeemed AT A BANK for over face value, collectors are willing to pay over the face value for coins considered to be "collectible". Perhaps that was not clear in the earlier note. Please refer to "A Guide Book of United States Coins 2014", 67th edition by R.S. Yeoman and Kenneth Bressett, page 232 for additional information. (The book is also known as "The Official Red Book".)
