Group items tagged Inflation - IBEconomics

Lost in inflation: the trap of focusing solely on the consumer price index | The Japan ... - 3 views

www.japantimes.co.jp/...nb20120220jp.html

Inflation Monetary Policy Fiscal Policy Balance of Payments

shared by Edward Pearson on 31 May 12 - No Cached

interest rate policy since February 1999
- Edward Pearson on 31 May 12
  
  -Increase borrowing and decreasing savings -however, real interest rates are positive due to deflation
  
  <div class="cArrow"> </div><div class="cContentInner">-Increase borrowing and decreasing savings -however, real interest rates are positive due to deflation </div>
  
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the government's fiscal policy options are starting to run out
- Edward Pearson on 31 May 12
  
  Increase in budget deficit as spending increases and tax revenue decreases - along with debt of 215% of GDP
  
  <div class="cArrow"> </div><div class="cContentInner">Increase in budget deficit as spending increases and tax revenue decreases - along with debt of 215% of GDP</div>
  
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This is reflected by globalized Japan's descent into its first trade deficit since 1980
- Edward Pearson on 31 May 12
  
  GDP=C+!+G+X-M demand for domestic products decrease because foreign products are relatively cheaper - increase in M and decrease in X, so AD decreases and GDP decrease causing deflation
  
  <div class="cArrow"> </div><div class="cContentInner">GDP=C+!+G+X-M demand for domestic products decrease because foreign products are relatively cheaper - increase in M and decrease in X, so AD decreases and GDP decrease causing deflation</div>
  
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prices in Japan remain very high by international standards.
- Edward Pearson on 31 May 12
  
  Lack of factors of production - mainly land need for importing from foreign countries possible solutions- Free trade
  
  <div class="cArrow"> </div><div class="cContentInner">Lack of factors of production - mainly land need for importing from foreign countries possible solutions- Free trade</div>
  
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This is one factor behind Japan's high prices.
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cannot pin their hopes on wage increases
- Edward Pearson on 31 May 12
  
  should be a decrease in wages as revenue decreases - sticky wages
  
  <div class="cArrow"> </div><div class="cContentInner">should be a decrease in wages as revenue decreases - sticky wages </div>
  
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They should step back and take a look at the big picture, including Japan's abnormally high prices,
- Edward Pearson on 31 May 12
  
  deflation possibly could be advantages - increase in spending power, international competitiveness etc
  
  <div class="cArrow"> </div><div class="cContentInner">deflation possibly could be advantages - increase in spending power, international competitiveness etc </div>
  
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Kenya inflation slows to 12.2 pct in May | Reuters - 5 views

af.reuters.com/...idAFJOE84T07420120530

shared by Adam Seldis on 30 May 12 - No Cached

Adam Seldis liked it

- Adam Seldis on 30 May 12
  
  This nicely allows some evaluation, as we can speculate on to what evaluate the government should change interest rates
  
  <div class="cArrow"> </div><div class="cContentInner">This nicely allows some evaluation, as we can speculate on to what evaluate the government should change interest rates</div>
  
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- Adam Seldis on 30 May 12
  
  I could use this to introduce the relationship between interest rates and exchange rates. However that's more international economics so I might just ignore it.
  
  <div class="cArrow"> </div><div class="cContentInner">I could use this to introduce the relationship between interest rates and exchange rates. However that's more international economics so I might just ignore it. </div>
  
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- Adam Seldis on 30 May 12
  
  This is a nice article that allows me to explain what inflation is and how Kenya has cost-push disinflation. I can easily show this in a diagram. What's more it also talks about monetary policy, so I can explain how the government has helped create this - the impact of interest rates on costs. There are also some really good evaluation opportunities, particularly as the article suggests the Kenyan government itself doesn't know what to do with interest rates. I can ignore exchange rates but instead focus on the possible impact on employment and general GDP growth, whilst not ignoring the ominous signs mentioned about future world commodity prices.
  
  <div class="cArrow"> </div><div class="cContentInner">This is a nice article that allows me to explain what inflation is and how Kenya has cost-push disinflation. I can easily show this in a diagram. What's more it also talks about monetary policy, so I can explain how the government has helped create this - the impact of interest rates on costs. There are also some really good evaluation opportunities, particularly as the article suggests the Kenyan government itself doesn't know what to do with interest rates. I can ignore exchange rates but instead focus on the possible impact on employment and general GDP growth, whilst not ignoring the ominous signs mentioned about future world commodity prices.</div>
  
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Unemployment and Inflation Rise in Euro Zone - NYTimes.com - 0 views

www.nytimes.com/...flation-rise-in-euro-zone.html

shared by Arla Takala on 12 Sep 12 - No Cached

Unemployment
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Fed unveils new bond-buying program - Taipei Times - 1 views

www.taipeitimes.com/...2003542773

unemployment economic growth inflation

shared by Cynthia Huang on 15 Sep 12 - No Cached

holding their money unused would essentially cost them
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keep its benchmark interest rate at ultra-low levels until at least the middle of 2015
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pushing up the prices of homes, stocks and other assets
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going to provide the demand most firms need to be able to hire or invest.
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The jobless rate would still be in the 6.7 to 7.3 percent at the end of 2014, while inflation would remain at or below the Fed’s 2 percent target through 2015
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Australian economy good enough to keep interest rates on hold | Television New Zealand ... - 2 views

tvnz.co.nz/...ep-interest-rates-hold-5074455

shared by Tessa Jalink on 17 Sep 12 - No Cached

out weaker commodity prices and the mining
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mining boom
- Tessa Jalink on 22 Sep 12
  
  Concerns that mining boom is over. This would cause a reduction in GDP
  
  <div class="cArrow"> </div><div class="cContentInner">Concerns that mining boom is over. This would cause a reduction in GDP</div>
  
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hold off on another rate cut
- Tessa Jalink on 22 Sep 12
  
  Further reduction in RoI is not necessary
  
  <div class="cArrow"> </div><div class="cContentInner">Further reduction in RoI is not necessary</div>
  
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softness
- Tessa Jalink on 22 Sep 12
  
  Economy is unstable, possibly due to uncertainty in mining?
  
  <div class="cArrow"> </div><div class="cContentInner">Economy is unstable, possibly due to uncertainty in mining?</div>
  
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investment and exports
- Tessa Jalink on 22 Sep 12
  
  Increase in I + X, resulting in an increase in AD
  
  <div class="cArrow"> </div><div class="cContentInner">Increase in I + X, resulting in an increase in AD</div>
  
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interest rate cuts
- Tessa Jalink on 22 Sep 12
  
  Interest rates have been cut over the past year.
  
  <div class="cArrow"> </div><div class="cContentInner">Interest rates have been cut over the past year. </div>
  
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- Tessa Jalink on 22 Sep 12
  
  This should cause an increase in C, resulting in an increase in AD.
  
  <div class="cArrow"> </div><div class="cContentInner">This should cause an increase in C, resulting in an increase in AD. </div>
  
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potential for rises
- Tessa Jalink on 22 Sep 12
  
  Very positive outlook.
  
  <div class="cArrow"> </div><div class="cContentInner">Very positive outlook.</div>
  
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growth and inflation
- Tessa Jalink on 22 Sep 12
  
  Inflation & GDP growth is expected
  
  <div class="cArrow"> </div><div class="cContentInner">Inflation & GDP growth is expected</div>
  
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- Tessa Jalink on 22 Sep 12
  
  Caused by previous RoI cuts.
  
  <div class="cArrow"> </div><div class="cContentInner">Caused by previous RoI cuts.</div>
  
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mining boom.
- Tessa Jalink on 22 Sep 12
  
  Concerns about mining boom, global uncertainty caused business confidence to decrease.
  
  <div class="cArrow"> </div><div class="cContentInner">Concerns about mining boom, global uncertainty caused business confidence to decrease.</div>
  
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- Tessa Jalink on 22 Sep 12
  
  Resulted in a decrease in I
  
  <div class="cArrow"> </div><div class="cContentInner">Resulted in a decrease in I</div>
  
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mining
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employment.
- Tessa Jalink on 22 Sep 12
  
  Increase in employment caused rise in business conditions.
  
  <div class="cArrow"> </div><div class="cContentInner">Increase in employment caused rise in business conditions.</div>
  
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India's GDP growth slows sharply - May. 31, 2012 - 2 views

money.cnn.com/...index.htm

shared by Fuyuka Nakamura on 06 Jun 12 - No Cached

sharply
- Fuyuka Nakamura on 06 Jun 12
  
  AD/AS changed in time fast
  
  <div class="cArrow"> </div><div class="cContentInner">AD/AS changed in time fast</div>
  
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In the first quarter, the country's manufacturing sector contracted and its agricultural sector slowed substantially
- Fuyuka Nakamura on 06 Jun 12
  
  An aggregate demand and supply curve can be shown to demonstrate the decline in GDP, which resulted from the contraction in the agricultural sector/manufacturing sector. The supply curve can shift down to demonstrate how the economy is producing less.
  
  <div class="cArrow"> </div><div class="cContentInner">An aggregate demand and supply curve can be shown to demonstrate the decline in GDP, which resulted from the contraction in the agricultural sector/manufacturing sector. The supply curve can shift down to demonstrate how the economy is producing less.</div>
  
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due primarily to weakness in its manufacturing and agricultural sectors
- Fuyuka Nakamura on 06 Jun 12
  
  Reason for the decline in economic growth in India. Shift in AS.
  
  <div class="cArrow"> </div><div class="cContentInner">Reason for the decline in economic growth in India. Shift in AS.</div>
  
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Spending by both consumers and the government decelerated slightly.
- Fuyuka Nakamura on 06 Jun 12
  
  By spending to decrease, the demand curve will shift, as people demand/spend less on the good/service.
  
  <div class="cArrow"> </div><div class="cContentInner">By spending to decrease, the demand curve will shift, as people demand/spend less on the good/service.</div>
  
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- Fuyuka Nakamura on 06 Jun 12
  
  Consumer confidence is affected by the high interest rates (mentioned below)
  
  <div class="cArrow"> </div><div class="cContentInner">Consumer confidence is affected by the high interest rates (mentioned below)</div>
  
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tighter monetary policy
- Fuyuka Nakamura on 06 Jun 12
  
  Monetary Policy can be described. The interest rate and supply of money can be described to show how goods/services can affect economic growth.
  
  <div class="cArrow"> </div><div class="cContentInner">Monetary Policy can be described. The interest rate and supply of money can be described to show how goods/services can affect economic growth.</div>
  
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interest rates high for three years to battle rapid inflation
- Fuyuka Nakamura on 06 Jun 12
  
  As interest rates are high, the sectors will not want to borrow money, as they will be losing out on money. Consumers will also save their money rather than spend it, which then affects the aggregate demand curve. Which then affects the economic growth.
  
  <div class="cArrow"> </div><div class="cContentInner">As interest rates are high, the sectors will not want to borrow money, as they will be losing out on money. Consumers will also save their money rather than spend it, which then affects the aggregate demand curve. Which then affects the economic growth.</div>
  
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- Fuyuka Nakamura on 06 Jun 12
  
  Contrationary Monetary Policy, as the Gov is trying to fight the inflation. In other words they want to lower the price levels. They do this by rising the interest rate to decrease the supply of money.
  
  <div class="cArrow"> </div><div class="cContentInner">Contrationary Monetary Policy, as the Gov is trying to fight the inflation. In other words they want to lower the price levels. They do this by rising the interest rate to decrease the supply of money.</div>
  
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lower that rate slightly to try to stimulate economic growth.
- Fuyuka Nakamura on 06 Jun 12
  
  Can talk about the effect of lowering the interest rates. How the consumers will start to spend rather than save and how the businesses (sectors) start to borrow money for investment, which then pumps up the economic growth.
  
  <div class="cArrow"> </div><div class="cContentInner">Can talk about the effect of lowering the interest rates. How the consumers will start to spend rather than save and how the businesses (sectors) start to borrow money for investment, which then pumps up the economic growth.</div>
  
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lower rates further
- Fuyuka Nakamura on 06 Jun 12
  
  the Reserve Bank of India can impose Expansionary Monetary Policy, lowering the interest rates, increasing the money supply, encouraging new consumption and investments. This will shift the AD out, increasing India's GDP within time. This will be their solution.
  
  <div class="cArrow"> </div><div class="cContentInner">the Reserve Bank of India can impose Expansionary Monetary Policy, lowering the interest rates, increasing the money supply, encouraging new consumption and investments. This will shift the AD out, increasing India's GDP within time. This will be their solution.</div>
  
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economic growth
- Fuyuka Nakamura on 06 Jun 12
  
  About India's GDP It will involve AD and AS
  
  <div class="cArrow"> </div><div class="cContentInner">About India's GDP It will involve AD and AS</div>
  
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sharply
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India is the world's second most populous nation after China, and the 11th largest economy,
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Japan tax hikes can't wait - Chicago Tribune - 0 views

articles.chicagotribune.com/...2_1_oecd-tomasz-janowski-japan

shared by Sean Dolan on 06 Jun 12 - No Cached

target of 1 percent
- Sean Dolan on 06 Jun 12
  
  most countries aim at around 3. Japan needs to get out of inflation so 1 is good enough
  
  <div class="cArrow"> </div><div class="cContentInner">most countries aim at around 3. Japan needs to get out of inflation so 1 is good enough</div>
  
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- Sean Dolan on 06 Jun 12
  
  most countries aim at around 3. Japan needs to get out of inflation so 1 is good enough
  
  <div class="cArrow"> </div><div class="cContentInner">most countries aim at around 3. Japan needs to get out of inflation so 1 is good enough</div>
  
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zero rate
- Sean Dolan on 06 Jun 12
  
  more investments because the interest rate or discount rate is zero. so increase in consumption. GDP increase if all goes well
  
  <div class="cArrow"> </div><div class="cContentInner">more investments because the interest rate or discount rate is zero. so increase in consumption. GDP increase if all goes well</div>
  
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budget deficits projected at about 10 percent
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10 percent
- Sean Dolan on 06 Jun 12
  
  ad valorem
  
  <div class="cArrow"> </div><div class="cContentInner">ad valorem</div>
  
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deflation
- Sean Dolan on 06 Jun 12
  
  the deflation decreased consumption and investments because people will wait for the price to decrease then buy it at a higher price
  
  <div class="cArrow"> </div><div class="cContentInner">the deflation decreased consumption and investments because people will wait for the price to decrease then buy it at a higher price</div>
  
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exports
- Sean Dolan on 06 Jun 12
  
  x will increase because it decreased drastically last year
  
  <div class="cArrow"> </div><div class="cContentInner">x will increase because it decreased drastically last year</div>
  
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energy shortages
- Sean Dolan on 06 Jun 12
  
  decrease in supply of electricity. So electric companies are increasing the price of electricity
  
  <div class="cArrow"> </div><div class="cContentInner">decrease in supply of electricity. So electric companies are increasing the price of electricity</div>
  
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BBC News - China moves again to control inflation - 0 views

www.bbc.co.uk/...business-11797026

Inflation

shared by Adam Seldis on 07 Apr 11 - No Cached

BBC News - UK inflation rate falls to 4% in March - 0 views

www.bbc.co.uk/...business-13045775

Inflation

shared by Adam Seldis on 12 Apr 11 - No Cached

How inflation affects investments - 0 views

goarticles.com/...4561654

Macroeconomics

shared by Arisa Yoshikawa on 29 Apr 11 - No Cached

BBC News - Yen dips as Yoshihiko Noda proposes snap elections - 0 views

www.bbc.co.uk/...business-20335142

shared by Yuuji Mitsuta on 20 Nov 12 - No Cached

It fell as low as 80.83 yen
- Yuuji Mitsuta on 20 Nov 12
  
  Depreciation
  
  <div class="cArrow"> </div><div class="cContentInner">Depreciation</div>
  
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print "unlimited yen" to help fight deflation.
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Analysts said such a move would weaken the yen even further.
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We are expecting the dollar/yen to head up to around 82 yen by the end of the year."
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Meanwhile, policymakers have found it increasingly tough to boost domestic consumption, as they continue to fight deflation or falling consumer prices, which tend to make customers put off their purchases in hope of a better deal down the road.
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needed to set an inflation target of 3% instead of its current 1% goal to help revive growth in the economy.
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monetary policy would be key
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Japan's exports, one of the biggest drivers of growth, have been hurt by a slowdown in key markets such as the US and Europe.
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BBC News - China inflation rate hits 10-month high in February - 0 views

www.bbc.co.uk/...business-21737871

shared by Adam Seldis on 11 Mar 13 - No Cached

Zynga's woes: The chips are down | The Economist - 1 views

www.economist.com/...zyngas-woes

zynga economic growth inflation unemployment exports demand

shared by Nicholas Zeitoun on 05 Jun 13 - No Cached

BP, Shell raided over alleged price fixing | News.com.au - 1 views

www.news.com.au/...story-fnda1bsz-1226642946822

pricefixing EU shell BP

shared by Jin Seo on 12 Jun 13 - No Cached

cartels
- Jin Seo on 12 Jun 13
  
  formal collusion; cartels are group of competitive firms colluding together to act as a monopoly - why is a monopoly market structure attractive to producers?
  
  <div class="cArrow"> </div><div class="cContentInner">formal collusion; cartels are group of competitive firms colluding together to act as a monopoly - why is a monopoly market structure attractive to producers?</div>
  
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market manipulation
- Jin Seo on 12 Jun 13
  
  The act of artificially inflating or deflating the price of a security
  
  <div class="cArrow"> </div><div class="cContentInner">The act of artificially inflating or deflating the price of a security </div>
  
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prices of crude oil, refined oil products and biofuels purchases and sales, potentially harming final consumers
- Jin Seo on 12 Jun 13
  
  oil- one of the most inelastic goods due to its high demand and usage in producing a lot of consumer goods
  
  <div class="cArrow"> </div><div class="cContentInner">oil- one of the most inelastic goods due to its high demand and usage in producing a lot of consumer goods </div>
  
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price fixing
- Jin Seo on 12 Jun 13
  
  price fixing = market manipulation
  
  <div class="cArrow"> </div><div class="cContentInner">price fixing = market manipulation </div>
  
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BP, Shell and Norway's Statoil
- Jin Seo on 12 Jun 13
  
  what sort of market structure are they in? oligopoly and their tendency to collude = because they are profit maximizers
  
  <div class="cArrow"> </div><div class="cContentInner">what sort of market structure are they in? oligopoly and their tendency to collude = because they are profit maximizers </div>
  
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European Commission
- Jin Seo on 12 Jun 13
  
  have monitoring for these companies due to high probabilities of collusion
  
  <div class="cArrow"> </div><div class="cContentInner">have monitoring for these companies due to high probabilities of collusion </div>
  
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collude
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prevented others from participating in the price assessment process
- Jin Seo on 12 Jun 13
  
  fairly high barriers to entry - one of the characteristics of an oligopoly
  
  <div class="cArrow"> </div><div class="cContentInner">fairly high barriers to entry - one of the characteristics of an oligopoly </div>
  
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the market vulnerable to abuse
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Consumers need to know that the prices they pay for their energy or petrol are fair, transparent and not being manipulated by traders
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High oil prices are crushing families across Britain
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market transparency
- Jin Seo on 12 Jun 13
  
  EVALUATION: what would the evaluation contain? - is it good or bad? (for consumers (benefits of colluding) and producers) - BP oil competition = shows how having contest ability may be dangerous - what can the governments do to stop collusion from happening?
  
  <div class="cArrow"> </div><div class="cContentInner">EVALUATION: what would the evaluation contain? - is it good or bad? (for consumers (benefits of colluding) and producers) - BP oil competition = shows how having contest ability may be dangerous - what can the governments do to stop collusion from happening? </div>
  
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Jin Seo on 12 Jun 13

Price fixing of oil companies in the EU

<div class="cArrow"> </div><div class="cContentInner">Price fixing of oil companies in the EU</div>

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The debt crisis: The scorecard | The Economist - 0 views

www.economist.com/...debt-crisis-1

shared by Adam Seldis on 30 May 12 - No Cached

Inflation - 0 views

www.bbc.co.uk/...business-19597223

shared by Erica Nozawa on 15 Sep 12 - No Cached

Minimum alcohol price in Scotland to be set at 50p a unit | Society | The Guardian - 4 views

www.guardian.co.uk/...mum-alcohol-price-scotland-50p

shared by Christina Seward on 06 Jun 12 - No Cached

- Christina Seward on 06 Jun 12
  
  first IA
  
  <div class="cArrow"> </div><div class="cContentInner">first IA</div>
  
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After resisting it for four years, Scottish Labour is also preparing to support the policy if Alex Salmond's government presses on with plans for a £130m "health levy" on supermarkets to claw back the £125m increase in their revenues from a 50p minimum price.
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said in January that inflation and a drop in alcohol misuse meant only a 50p cost would have a significant impact now.
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60 lives in the first year, and 318 a year within a decade. It would most directly affect alcoholics,
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extra £120 a year.
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Food prices rise, but CPI below 2% - Taipei Times - 0 views

www.taipeitimes.com/...2003534594

Inflation deflation

shared by Cynthia Huang on 06 Jun 12 - No Cached

Vegetable prices increased by 25.35% from a year ago because rainy weather cut supplies, and partly because of a low comparison base from last year
- Cynthia Huang on 06 Jun 12
  
  The prices increased due to bad weather. The supply must have decreased as prices increased.
  
  <div class="cArrow"> </div><div class="cContentInner">The prices increased due to bad weather. The supply must have decreased as prices increased. </div>
  
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Lowering telecoms and Internet subscription costs
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annual increases in the consumer price index (CPI) remained below 2 percent last month
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Telecoms and Internet connection prices tumbled 10.15 percent
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dragging down the annual increase
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central bank will probably not raise Taiwan’s policy rates
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rainy weather cut supplies and drove up costs
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Expenses for eating out expanded by 2.38 percent last month
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government’s recent cut to its full-year CPI growth forecast would further strengthen the central bank’s resolve in holding rates at their current levels
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25.35 percent
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Without the lower prices of telecoms and Internet expenses, the annual growth in CPI would have climbed over 2 percent last month
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China cuts interest rates - 1 views