Essay on Inflation

Sky-high cost of living - Adjust the linked exchange rate system in Hong Kong The Consumer Price Index of Hong Kong raises over four times since 1980`s(MTR,2014), which means the cost of living in Hong Kong went up with an exaggerated speed. Cost of living is a general term for the price of goods and services required for maintaining an average level standard of living(Business dictionary,2017). Although high cost of living might be common in the world, the situation of Hong Kong differ from…

or leftward shift of the price level is what the Keynesian Model unemployment tends to rise sharply. The is caused by both the inflexibility of wages, but also is an effect of inflation. In this model, the aggregate demand shifts in prices are necessary for inflation to be able to be put under control. The effects of inflation cause the price levels to be put out of equilibrium, but the increases and decreases in aggregate demand in this model allow for these price levels to change, therefore…

raised budget expenditure. Showing Vietnamese “heavily relied on external resources” (Binh Nam, Chi Pham, 2003). However, the consequence of the first period is inflation and requires the country to print money, to keep continually spending. The fiscal and monetary policy at that time was to minimized printing money to control inflation, reform structure. The budget expenditure was separated and responsible of state companies for their own profit and loss (Binh Nam, Chi Pham, 2003). By tax cut…

countries. In the article With Steady Gains in Economic Outlook, Fed Leaves Interest Rate Unchanged, written by Binyamin Appelbaum, the Fed examines how Trump’s presidency can alter the interest rate and how that can affect employment, consumers, inflation, job market, and other factors (Appelbaum). If the federal fund rate remains unchanged then, the economy will have a greater chance of growing. On the other hand, if the interest rate does not change then what does this mean to Americans and…

traditional Keynesian policy, which was viewed as the model for progression of states’ economies (Pilling 2014). The decade’s trouble was typified by unprecedented, concurrent high inflation and unemployment rates, which the dominant economic premise of the time, Keynesian theory – was unable to resolve. High inflation and unemployment and the accompanying recession it generated led to the term stagflation. Furthermore, stagflation created a crisis for the corporate world’s capacity to make…

In this thirty-minute-long video, Dalio in a very simplistic way explains what is an economy, how it works and the main factors that are involved. He begun by defining the economy as a machine that is kept working by the transactions between governments, businesses and singular people. These transactions happen in a market, where money or credit is exchanged for goods, services or financial assets. The biggest buyer and seller of the market, the government, is divided in two parts: the central…

any decrease of demand. If there were any unemployment it would be for a short time, as the pattern of demand changes. Although, the same process seen previously will restore equilibrium Quantity Theory of Money Neo-classical economists notion of inflation reflect on the Quantity Theory of Money, which came from Fisher Equation of Exchange: MV = PT They proposed that the velocity of totation of money would be relatively balance and the number of transactions being done would always gravitate…

its final year. Many believe the fall of Rome was mainly caused by the inflation of prices throughout Rome. The inflated prices would cause armies to become nonexistent, tax prices to rise, make everyday items becoming unaffordable. Army population would decrease due to soldiers not being paid and would have to barter to pay off the money. Tax prices would rise due to the government not being able to pay the soldiers, and inflation would cause prices of everything to increase. On top of all the…

Next, a SWOTs analysis conducted to identify internal environments and external environments that impact on achieving Cool Cars business goals. It is crucial to have in-depth understanding the external and internal situation of the company before developing a marketing plan for Cool Cars. STRENGTHS: - Strong brand in high-income segment: three out of four brands target high-income segment. Primary buyers are 4L, 4F, and 4S. - Quality products: Cool Car is valued on its engineering capabilities.…

product. To truly understand the U.S and Japan’s economic trends one must carefully analyze the differences in the figures of their economic indicators. Such economic indicators such as Gross National Income (GNI), Gross National Product (GDP), and inflation rates amongst others allow for analysis of economic performance and predictions of future…