Group items tagged

What I like about this article is not just that it's related to inflation (which is definitely a plus) but that it also discuss one of the factors of an economy affected by inflation, interest rates. This is very important because many articles will talk about how inflation has increased or decreased and how this is good or bad for the economy, but they don't explain in what way. You all get a sense for how the government of Nigeria intends to react to this inflationary event and what role the control of interest rates plays in the reaction.

The congress is now thinking about new solutions so that the student loan interest rates won't double.

The article talks about the interest rates set by the Bank of England previously and how those interest rates created an economic growth in the UK.

This article talks mainly about several problems affecting monetary policy. Among those are instability to the financial system, a sudden rise in interest rates and inflation. Presently, Fed is using easy monetary policy to increase AD. There is also quantitative easing mentioned in the article, which refers to purchases by the central bank of long-term bonds or $85 billion a month in Treasurys and mortgage-backed securities so that the money supply increases. Again, the major problem related to this Fed strategy is inflationary pressure (also by selling $1.1 trillion mortgage-backed securities)...

This article by Jeff Cox discusses how the Fed is using the monetary policy to increase aggregate demand. It also presents problems affecting monetary policy. The problems are as follows: "Among those concerns are instability to the financial system, a sudden rise in interest rates and inflation."

This article discusses the hard empirical evidence, arguing that, in fact, Japan is behaving rather responsibly and that other strong economies have themselves benefited from undervalued currencies. That said, it is true that politicians' short time horizons often lead to stealthy policy and large swings in exchange rates. Economists should therefore aim to promote longer-run cosmopolitan interests rather than shorter-run nationalistic agendas where possible.

Although new jobs are created, there is no improvement on the unemployment rate, which remains at 5.4%. However this is a sign of economic improvement in Australia. And the 71,500 are just a start, more jobs were planed for February (9000). In 2011 Economists have predicted a resource boom, due to the monetary policy by the governor Glenn Steves. The bank has tried to boost certain sectors in the economy, however he kept the interest rates at 3%. That might cut into the current boom and slow it down. The main concern is on the value of the Australian dollar.

Even though there had been a rise in total workforce, unemployment has not improved and remained at 5.4%. Nevertheless, there are optimistic signs of economic improvement for Australia.

This article discusses the failed prediction from most economist regarding the future of governmental cuts and taxes. The eading is mst interesting, as you get insight to the reasoning behind the prediction, and also the reason why they failed, which is becase the Federal Reserve's unexpected numbers and interest rates.

economists thought higher taxes and government spendings were going to delay economic growth in the first quarter of the year, but economic data has so far proven them wrong.

This article mentions how Japan's monetary policy has led to the weakening of its currency, the Yen. In other words, this is an example of monetary policy leading to inflation. To do this, the Japanese likely decreased interest rates too much, or increased the supply of money too much. Both of these are the result of loose monetary policy, and were attempts at expansion.

The article talks about the increasing investment in African countries due to falling interest rates and lackuster growth. Investing in African bonds gives off a high profit.

The U.S. trade deficit widened slightly in August as exports slipped, suggesting trade will probably not be much of a boost to growth in the third quarter. The import growth is weak and consistent with sluggish domestic demand. So in fact this article is about the goods and services account under the current account. The possible reasons for such trade deficit may be a decrease of foreign demand for US exports, decreased domestic interest rates and speculators' anticipations for the US dollar to rise, which means that there will be a tendency for the price of US dollar to appreciate. This leads to even less competitive exports. If I look at this situation from another perspective, more currency flowed out for imports than it flowed in for exports, creating the debit item and exacerbating the current account.