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Xinmian H

Iran's Double-Digit Inflation Worsens - NYTimes.com - 0 views

  • double-digit inflation
  • March to an annualized 31.5 percent, compared with 30.2 percent in February and 26.4 percent a year earlier,
  • implicit acknowledgment that international sanctions linked to the disputed Iranian nuclear program are causing some economic harm.
  • ...1 more annotation...
  • the real rate could be at least double the official rate
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    The article talked about the serious inflation in Iran. The government condemned international sanctions linked to the nuclear program. In March the inflation rate reached 31.5%, but the real rate might be double of that. This article shows inflation is indeed very hard to control.
anonymous

Inflation Is Miserable. Unemployment Is Worse. - 0 views

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    This article highlights the complex relationship between inflation and unemployment by pointing out the effect that each has on the well-being of individuals. A recent study showed that a whole 4 percent increase in inflation leads to the same amount of unhappiness as an only one percent increase in unemployment. Inflation and unemployment have always been considered inverses, in other words as one increases the other decreases. However the author of the article points out that the goal of central banks should be to keep unemployment as low as possible, instead of inflation, because of its widespread "misery" effect.
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    Although inflation makes people unhappy, it turns out that unemployment makes people unhappier. The country's "misery index" is extremely high.
Xinmian H

Czech Inflation Stays Below Target Amid Currency-Sales Debate - 0 views

  • The Czech inflation rate remained below the central bank’s target for a fourth month in April,
  • Consumer sentiment remains poor as a result of rising unemployment, declining real incomes
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    This article reveals that as the cost of remaining Czech inflation rate in a low range, the consumer demand is weak and unemployment rise up. This article proved the trade-off relationship between inflation and unemployment.
Christopher P

The Fed's Bullard thinks inflation is dangerously low - 0 views

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    This article deals with the delicate balance between inflation that is too high or too low. The president of the Federal Reserve Bank in St. Louis, James Bullard, argues that the current inflation rate (1.3%) may be getting dangerously close to reaching deflation. Although the unemployment rate has remained higher than 7%, the inflation rate is well below the comfortable 2% goal kept by the Federal Reserve. If the issue becomes preventing deflation, the "Fed" should instead use policies to increase the money supply rather than adopt "tight" money supplies that slow inflation and economic growth.
Nehir D

Shop price inflation on the rise - 0 views

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    In UK shop prices rose at the fastest pace since December as the cost of non-food products increased for the first time for a year. In overall shop price inflation increased 1.4% from 1.1% in March. Food price inflation remained high 3.5 %. It is caused more pressure on cash-strapped consumers.Prices rose across health and beauty products mostly. The rate of year-on-year price deflation in shoes, footwear and electrical goods slowed to 2.2% from 4.2% in February.Total inflation is at its highest rate which is reflecting that many retailers went into the new year with less stock to clear so discounting is less extensive compared with 2012.
Adil R

Mark Carney abandons Thatcher-era supply-side policy - 1 views

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    This is a fairly recent article that talks about supply side policies implemented by the new head of the "Bank of England", Mark Carney. The article mainly discusses their new strides to reach unemployment rates, which heavily involves controlling inflation and interest rates. It is interesting how it talks about how Keynesian supply side policies were not effective post war era because they let inflation spiral out of control. The author believes in Mark Carney's aggressive take on the issue as it plans to control inflation, unemployment and has a contingency plan.
anonymous

Hyper inflation - 0 views

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    I find this article to be very eye opening and very reminiscent of the post World War 1 Germany era. In this article we see inflation taken to an extreme where the country is unable to maintain a stable economy. They even mention in the article that the government revalued the currency by taking off 10 zeroes and getting rid of extremely high bills. But even now they are still facing the same problem, in this article the rate of inflation is estimated to be at 231 000 000 %.
anonymous

McDonald's latest earnings show why inflation isn't the problem in the economy right now - 0 views

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    This article suggests that policymakers should worry more about restoring economic growth and lowering the unemployment rate before worrying about inflation. It says that there will be no inflation "as long as growth remains depressed and unemployment high."
Landon F

Study: Fighting Inflation Rather Than Unemployment Massively Increases Human Misery | T... - 0 views

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    This article talks about how people are more hurt by unemployment than by inflation. 
Christopher P

Falling inflation and high unemployment puts pressure on European Central Bank to cut r... - 0 views

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    This article discusses the common trade-off between unemployment and inflation. In Europe, the Central Bank is expected to lower interest rates, a monetary policy strategy, in order to aid with the current issue of low inflation and high unemployment. Decreasing interest rates has the general effect of increasing Aggregate Demand in an economy, and according to the relationship between these two aspects of macroeconomics this increase is likely to increase inflation while also reduce unemployment as real output increases.
Xinmian H

Zimbabwe Price Controls Cause Chaos - New York Times - 2 views

  • physically forcing merchants to lower prices
  • nation’s inflation, the world’s highest.
  • Because the government has threatened to seize any business that does not sell goods at the advertised price, the merchant said he was keeping his shop open, but with virtually nothing on its shelves.
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    Zimbabwe has set extremely low price controls for many primary products, and this has caused many people to go out of business. People are losing a lot of money, but the government is refusing to let the prices go higher. The government is making up for the loss by printing more money, which is causing price inflation. The people are upset, but with the government making sure that the prices are low by threatening to close businesses, there is nothing the people can do about it.
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    Zimbabwe government is controlling food price by physically forcing merchants and shop keepers to low their price down, other wise will be beaten. It is actually not going to work and can not last for long time. Producers can not supply the goods at a price that allows retailers to make a profit. The inflation of this country also reached the world's highest level. This article showed that price control has to be realistic otherwise will harm the economy.
anonymous

Minimum wage inflation indexing stalls in NM panel - 0 views

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    This article speaks about a trending topic her in the US which is that of increasing the minimum wage from $7.50 to $9.00 or just around that. This would be a step in the right direction because it would increase the nation's overall per capita salary. What is also interesting is that the minimum wage in the united states is not adjusted to the rate of annual inflation (3%), only ten states are the wages adjusted. The bill in congress would include after a certain time that the wages start to be adjusted with inflation annually.
Christopher P

Paul Ryan Isn't an Inflation Nutter - 1 views

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    This article mainly discusses the economic policies of Representative Paul Ryan involving his concerns that continuing budget deficits will eventually lead to high rates of inflation. The author evaluates a theory regarding the importance of government policy on the price level of the economy. The view states that there is only one point of equilibrium in the macroeconomy where Aggregate Supply will equal Aggregate Demand, and the changing policies of the government play a crucial role in meeting that equilibrium by affecting not only the value of business assets but also people's expectations.
Landon F

South Africa's Inflation Rate Unchanged at 5.9% in March - Businessweek - 0 views

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    This article is about how South Africa's inflation rate is remaining in it's target range and their rand is gaining value. 
Deepak B

Nigerian Inflation Rate Drops to Lowest in Almost 5 Years - 0 views

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    Inflation in Africa's largest oil producer eased to 8.6 percent from 9.5 percent in February, the Abuja-based National Bureau of Statistics said today in an e-mailed report. The median estimate of 10 economists surveyed by Bloomberg News was 9 percent. Prices rose 0.7 percent in the month.
Elnara H

China inflation slows in March - 0 views

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    This article talks about the level of inflation in China, how the prices on food has increased in recent time. They discuss it by using the consumer price index in order to compare it with the previous years. They also mention what impact does the inflation have on the China's economy and it's known as the main ruler of worlds economy, so they talk about that moment as their main concerns and about the ways they are planning to do in order to prevent any harmful effects on China's economy.
Tony L

Inflation in UK - 0 views

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    This article updates us on the latest news about the inflation in the UK. It states that the inflation rate is already up to 2.8%. It also states that the percentage is likely to go over the 3% mark later this year.
anonymous

jobs over inflation - 0 views

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    The federal reserve decided to choose to save jobs instead of fight inflation. They realized that they have to fight unemployment.
Deepak B

Unemployment up and inflation down in the eurozone - 2 views

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    Inflation in the eurozone has been plummeting. In the latest quarterly data, the all-items index is estimated to have grown by just 1.2 per cent over the year - well below the 1.6 per cent which was predicted
anonymous

Yellen: Fed Should Focus On Jobs, Even If Inflation Edges Past Target - 1 views

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    This article from the Huffington Post is talking about the dilemma between dealing with the "slightly high" inflation rate in the united states or the higher unemployment rate. This article suggests that instead of dealing with the inflation they should put more focus on the unemployment rate because in the long run the government will benefit from it more. Really interesting article i recommend all of you to read it.
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