Group items tagged

the article talks about the warning Chinese bank is giving to the country on inflation. China is on "high alert" because of a reported jump in inflation of a 3.2%. China must really pay attention to inflation this time because as Mr. Zhou said in the past some economists thought that a high inflation was no big deal and they could control it after the economic growth but international experience show that it might not be correct.

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 article talks about the dangers of high inflation in the UK. It shows the problems people had to face in the past due to high inflation. Furthermore it makes suggestions on how to reduce inflation and where to reduce it to.

Consumer prices rose 2.8 percent from a year earlier, compared with 2.7 percent in January, the Office for National Statistics said in London today. The two major reasons for persistent increase in average price level are higher energy bills and a weaker pound. Housing, water, electricity and gas added 0.11 percentage point to annual inflation in February - the biggest upward impact. Investor confidence unexpectedly rose to a three-year high of 48.5 in March from 48.2 in February, which means higher aggregate demand and demand-pull inflation.

This article is about the current inflation rate in Great Britain and its unchanging status in the past four years. Jeremy Cook, chief economist at the World First foreign exchange company said, "Home-grown price pressures are also increasing with transport, food and utilities boosting upwards in the latter part of 2012; this will continue to erode wage value through 2013, hurting consumer confidence and limiting spending."

The article talks about the effect of Inflation and the students loans rising just by 1% which is below inflation

This article talks about ZImbabwe, and the hyperinflation they are experiencing at the moment. The inflation has gone so far that the government currently is owner of an amount of Zimbabwe's currency equal to 217 dollars. The economy in Zimbabwe hit rock bottom around a decade ago, after longtime President Robert Mugabe seized white-owned farms, which prompted international sanctions, damaged investor confidence, damaged tourism, and caused other economic problems.

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."

China picks up the decrease in trade and starts their way on a new economic recovery after a shaky inflation in January. Their exports increased drastically compared to the previous couple of months, and their global trade suplus widened.

This is about Zambia and how they have a trade deficit. It talks about how the deficit is leading to a rise in inflations.

This brief article describes how the bank of England recently have decided through their Monetary Policy Committee to focus more on growth, after focusing heavily on inflation in the past years. Trade-offs are hopefully increasing growth whilst also maintaining the 2% inflation target.

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.

This article mainly focuses on China's economic growth and its fast approach to what could put it's economy in an equilibrium state."The rate, the spot rate and future rate, determined by the market supply and demand, basically are very close to the equilibrium rate," said Zhou Xiaochuan, governor of the People's Bank of China. He also warns that at this time China is trying to maintain low prices and if external governments begin to have inflation problems this could potentially create problems for China's economy. This comment was a directly linked with China's exchange rate against the US dollar, an issue that has yet to be addressed.

In this article it is about "how the excise tax on gasoline and diesel fuel has been the main source of funds for building and maintaining the nation's roadways. It has paid for most of the four million road miles currently in service" By imposing taxes, governments obtain certain tax revenue which is used for supporting national infrastructure (roads), public services and subsidies for other things. But gas tax is not sufficient anymore. So, there are myriad discussions across political fields how to alter current tax policy. There are several options: taxing the miles (the question is how to tax the miles) toll roads (but they would hardly replace the gasoline tax), adjusting tax to inflation, taxing oil instead of gasoline or taxing cars. It seems resolving this issue is a hard nut to crack for the U.S. government.

The article talks about the effect of economic growth in China (Inflation rises)

Welcome back to the wonderfully confusing world of economics. In class we've only scratched the surface of monetary policy and, if there's one thing the world is good at, it's making things so much more complicated than you would imagine. However, as this article says, the FOMC is trying to bring us back to simpler time. They want to make policy decisions clear cut, a 1 step approach for deciding how to act during inflation, deflation, recession, and boom. Not a bad idea, but can they pull it off. I guess we'll find out.

This article talks about RBA monetary policy cuts and how they affect the inflation forecast yet have little to no effect on the predicted GDP of Spain.

The Russian Economy is facing a decrease in economic growth, largely in part due to its inflation, and dependence on oil production (which accounted for 50% of revenue last year). In the future, with oil reserves depleted, the oil production will not be able to produce as much, and aggregate supply will be down. This poses a problem for Russia as the supply curve will shift left.

This article talks about the increase of oil prices due to the price of the dollar being down. This article supports the topic of this week because as the demand of oil increases so do the prices. As the demand for the consumption of a product increases, the price for the product either increases or decreases. Changes in the relative prices of goods (such as oil) occur because of technological change or shifts in supply or demand. Based on this article "The price of oil and gasoline are up because the Federal Reserve has driven the value of the dollar down." - Charles Kadlec

A few economists opinions on inflation in the meeting at the Bank of England.