...expansion of the early universe, see Inflation (cosmology). For other uses, see Inflation (disambiguation). Economics 2011 World GDP (PPP) per capita by country 2012 World GDP (PPP) per capita by country Index Outline Category History Types Classification History of economics Economic history (academic study) Schools of economics Microeconomics Macroeconomics Heterodox economics Methodology JEL classification codes Theory Techniques Econometrics Economic growth Economic system Experimental Mathematical Game theory National accounting By application Agricultural Behavioral Business Computational Cultural Demographic Development Ecological Education Environmental Evolutionary Expeditionary Geography Health Industrial organization Information International Labour Law Managerial Monetary / Financial Natural resource Personnel Public / Welfare economics Regional Rural Urban Welfare Lists Economists Publications (journals) Portal icon Business and economics portal v t e In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change...
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...comparison between the United States and Russia and their GDP, the United States has a GDP of 17.46 trillion while Russia’s is 3.568 trillion. The United States GDP per capita is 54,800 while Russia’s is 24,800. It is very clear when you compare the two that the United States has the bigger GDP by far. I believe that the United States has a better standard of living for its citizens than Russia. To evaluate the standard of living I looked at the real GDP per person statistics. Also, I looked back through the textbook to page 44 where you can see the income per person for different countries. It was figure 2.3 to be exact. For the United States I browsed on the statistics chart in the textbook on page 133. Another thing that I wanted to add is if you wanted to look deeper into this you could research life expectancy in each country. We have a better idea for the United States. However, I would not have a guess for Russia. We learned that could make a difference when it comes to standard of living. 3. The unemployment rate in the United States is a bit higher than it is in Russia. As we can see in the United States it is 6.9% and in Russia it is 4.9%. We have to remember that these stats are from 2014 though. It could be slightly different for both countries for this year. The labor force participation rate for the United States is 63.41% and for Russia it is 86.49%. The United States is two percent higher on unemployment. Being that Russia has more than a 20 percent jump on...
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...section about Russian output, we now turn to the BRICS country GDP, Inflation, and Monetary Policy. All three of these areas of the Russian economy depend immensely on the product that is 70% of Russian export: Oil. We see that each year there is a dip in the price of oil Russian (for example 1998 and 2008) we see a dip in GDP and a rise in inflation. Hence, the monetary policy set by the Central Bank of Russia is contingent upon the gas price. The Russian GDP has been growing staidly since 2008. We see that before the 2008 global financial crisis, Nominal GDP was on an annual rise of 7%. However, in 2008 the Oil price plummeted from 147.00USD/barrel to 50.00USD/barrel. This caused a government shortfall in the 08-09 fiscal years, and resulted in a sharp dip in nominal GDP from which Russia has yet to recover. However, despite the 2008 crisis, the Russian GDP has been growing 4.3% annually since 2008, as the price of oil continues to rise. In 2011, as Russian citizens are getting back to work, the current GDP per capita is $13,236 USD. The primary problem with the Russian economy is its historically high inflation. Only recently has the Russian economy seen an inflation number in the single digits (3.7% as of Feb. 2012). Nevertheless, in 2011, the inflation rate was a little bit under 10% and is has been in the general 10-15% range since 2004, with the 15% spike in 2008. The reason for the low inflation rate this year is based in three main areas: the contractive monetary...
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...BRIC: Currency Depreciation in Russia and Brazil ◎D0131160 Irina Chen ◎D0131187 Gloria Chang ◎D0173297 Sunny Chiu ◎D0173270 Doris Chen ◎D0173670 Athena Du Contents Abstract ..................................................................................... 2 Brazil ......................................................................................... 3 Why Brazil become the BRIC ................................................... 3 What was behind Brazil’s Depreciation? ................................. 8 Russia ...................................................................................... 13 Why Russia become the BRIC?.............................................. 13 What was behind the Ruble depreciation? ........................... 19 Comparison and Similarities between Russia and Brazil ....... 24 In the Future ........................................................................... 25 The Future of Brazil ............................................................... 25 The future of Russia .............................................................. 25 Conclusion ............................................................................... 26 Contributor ............................................................................. 27 Reference ................................................................................ 27 1 Abstract The BRIC is the acronym of four nations, including Brazil, Russia, India and China. The conception...
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...different countries should be equal, when they are calculated on the same currency. The relative form states that the prices for the same products in two different countries will not be the same due to market imperfectations. Assume that we have two countries A and B with respective inflation rates at 0,1% and 16,6% with different currencies. The difference in the inflation rates is 16,5% which means that the country with the lower inflation rate (country A) should appreciate its currency almost 16,5 percent or for country B to depreciate its currency at the same percentage. 2) Assume that we have two countries: Germany and Russia. Germany has an inflation rate at 0,40% and Russia has at 16,40%. Germany imports from Russia will increase and respectively Germany exports to Russia will decrease. This procedure leads to the appreciation of russian ruble this...
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...and Its Aftermath The country of Russia as a whole was in great turmoil as far as financial stability is concerned during the late 80’s and early 90’s. The government had made irresponsible decision that ultimately caused inflation throughout the country. Because of this businesses began to suffer as well as employees of these particular businesses. This forced the government to make changes from a legal and cultural standpoint which began with the government moving from a centralized planned economy (communist) to a market controlled economy ( Free price system). Because of these legal changes prices rose and inflation went through the roof. Financially this caused other problems due to the fact other countries/businesses were skeptical about doing business with Russia because of the instability of the ruble and the economy. Other ramifications were that during the communist era the prices were regulated because it was centrally controlled. Once the transition from moving to a market economy happened the prices were no longer regulated which caused them to rise dramatically. Russia was accustom to the communist structure and moving to a supply and demand economy was a cultural shock to Russia as noticed by the way the government handled the transition ( inflation/prices rose). Russia made another legal decision that created more problems because they did not want to raise taxes they decided to print more money which added to the inflation dilemma. Through all of this mayhem...
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...The Russian financial crisis occurred on August 17, 1998, exacerbated by the global recession caused by the Asian financial crisis in 1997. Russia was highly dependent on exports of raw materials, with petroleum, natural gas, metals and timber accounting for more than 80% of its exports. With the drop in global demand, prices of those commodities began to decline. This resulted in an impact on its foreign exchange reserves since Russia had a fixed exchange rate regime during this period of time, where the ruble was only allowed to move within a narrow band. With the speculative attacks caused by the Asian financial crisis along with the decline in global demand, the Central Bank of Russia stepped in to defend the ruble in the markets. Russia was also experiencing fiscal deficits and declining productivity in its economy. Foreign capital was initially attracted to the Russian market due to the high interest rates, which was then used to provide internal loans in the country. The Gosudarstvennoe Kratkosrochnoe Obyazatelstvo (GKO) bond interest rates soared to 150% in an effort to prop up the currency and to stop capital flight. Internally, debt on wages continued to grow and financing for major big budget items were impacted as debt grew. The Chechnya War from several years earlier further compounded these problems. Russia also suffered from a political crisis where the entire government was fired in 1998, causing for investor confidence to be further eroded. ...
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...A Case Study of Currency Crisis: The Russian Default of 1998 Background of Russia Russian Federation was formed in 1991. The country tried to maintain a fixed exchange rate however, Russia had a “fragile fiscal position”(Economic Report) which turned unstable as the world markets changed. Up until 1997 Russia had slow but eventually a year of positive economic growth, at which point the country started to stumble. Russia launched a reform program in 1992. At the time of 1992, the monetary inherited from Soviet times resulted in an increase over 350 percentage of price level in a month. Rumbles was introduced in July 1992, inflation became the central concern in the relief. With limited foreign reserves, Russia joined the IMF and World Bank on June 1, 1992 and agreed several economic transition programs that would bring fund of billions of US dollars. After 4 years of economic stabilization and control of inflation rate, Russia’s inflation fell from 197% in 1995 to 47.7% in 1996 and 14% in 1997. In 1993, a short debt term instrument, Government Short Commitments (GKO), was introduced. It provided the government with an extra, non inflationary to finance its budget deficit. Russia’s fiscal deficit fell significantly, from 11% of GDP in 1994 to less than 5% of GDP in 1995. CBR’s foreign reserves increased from 4 billion US dollars in 1994 to 14.4 billion US dollars in 1995. However, one third of ruble short-term debt was held by foreign investors. Direct foreign investments...
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... The causes of the surge in inflation in Russia in the 1990’s were the Russian government. They implemented economic reform to transform the crumbling economy. But the central element of the plan was to put an end of the price controls, but once the price controls were removed the prices increased. The decline in value of the ruble against the dollar shows that prices began to surge and inflation was high. As a result the supplies were down and Russia was suffering from a limited supply of goods. Many businesses began to fail, so Russia’s government began to pour money into businesses to minimize job loss. The Russian government’s deficit began to grow at a rate that was not manageable. The Russian government was not willing to increase taxes so they printed more money, but as a result it increase inflation. The rate of inflation was out of control and the Ruble was very unstable. When the inflation reached an annual low, the Russian government decided to take action. To reduce the uncertainty, the Russian government requested IMF loans. Also, the Ruble was regulated to stay within a range of 4,300 to 4,900 against the dollar. In return for the loan, Russia agreed to limit the growth in its money supply, by reducing public sector debt, and increasing government tax revenues. Russia’s government continued to spend more while collecting tax revenues that were lower than projected. The Ruble crisis made global business with Russia a high risk, and many legal...
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...during the early 1900s in Russia after being involved in wars such as the Bolshevik Revolution (History.com Staff). Russia was disunified and looked into the idea of Communism after past wars (The Bolshevik Revolution). Russia rose to Communism because of past Russian warfare, an immense backlash of laborers, and its unstable society. Past Russian warfare hurt the country economically and politically. The Bolshevik Revolution was initiated from a revolt against the Tsar Nicholas II government (The Editors of Encyclopædia Britannica). Tsar Nicholas II sent 11 million peasants...
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...policies were successful in modernising the Russian economy in the period of 1892-1904? At the end of the nineteenth century, Russia had been plunged into depression, because the government was forced to print more and more money which caused a rise in inflation. In addition, because Russia was at war with Turkey, over thirty per cent of the government’s expenditure was being spent on the armed forces, whilst another thirty per cent was being lost on debt interest, which left little money for education or social welfare. Ivan Vyshnegradskii, the finance minister from 1887- 1892 began attempting to rescue the government finances. He reduced imports and imposed tariffs on imported goods, which forced peasants to sell more and more grain which they could not produce, this lead to a famine which overwhelmed large parts of the country in 1891. Russia was also lagging behind many of the Western countries at the time in terms of industrial development too. When count Sergei Witte was appointed finance minister in 1892, there was a desperate need to decrease inflation, improve infrastructure and encourage foreign investment. However, it is debatable how successful the policies introduced by Witte were in modernising the Russian economy. Witte’s aim was to make the Russian economy strong enough to maintain Russia’s position as a Great Power. However, Russia did not possess several of the essential factors required to be able to rapidly industrialise like countries such as Germany and...
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...volatile, globalization has its pace and when a particular segment becomes saturated in every economy there would be no exchange of this good or service or technology from one another and the scope for globalization ceases. When each country has a holiday destination like Miami nobody would be ready to come all the way spending more money. This is very much a reason for more south to south trade and south to north trade rather than north to south. With this transition or reform in the economic flow we can say the world is being pulled apart. The question “the world is still not flat?” is a comparative term and drawing back the lines to the 3000BC, I would say the world is flat. Russia is a young economy with great scope of development. After its economic reform in 1999 it faced a huge inflation because of improper regularization schemes, much of the nation’s wealth has been concentrated in hands of very few individuals which gave its name as land of billionaires. It has abundant natural resources like oil and metals which accounted for 70% of its exports and 40% of its GDP. It was listed as fastest recovering economy by IMF during 1991 -2000 which was mostly because huge disposable income...
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...Undermining Tokugawa-Population growth put a strain on their resources , their agriculture was exhausted, inflation • Forty Seven Ronin- revolt of the samurai warriors against the government • Ming Empire Problems- Natural disasters , agricultural distress, climate change , diseases • New World Silver- caused inflation , cheapened the economy • Lee Zicheng – Chinese rebel leader that captured Beijing • Manchu Imperial Family- Family that came from Manchuria and came into power and later ruled the Qing dynasty • Dutch East India company- a charter private company that controlled trade for china • Kangzi- A child Chinese emperor , did major expansion in china’s borders, gained control of the government , centralized government • Qing Technology-Introduced new ways to draw maps, created European calendar, worked in astronomy and anatomy • Canton system- a way for china to control trade, they did not allow ships to come in , closed off every port , left only one city port (Canton) open • Macartney- British ambassador that demanded china to open up their ports , he failed though • Environmental Stress- caused by population growth and • Muscovy- Area that surrounds the great city of Moscow • Tsar(Russian equivalent to emperor ,dictator)Ivan Iv -Ivan the fourth was also known as Ivan the terrible- first emperor of the Muscovy region • Siberia- Northern area of Russia , had very valuable...
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...KEY TERM AND WHY I AM INTERESTED IN IT While studying Russia for the GBCA, it has become increasingly obvious that everyone generally feels that Russia’s main (and some may say only) contribution to global trade is in raw materials (Lally, 2012). I am curious to learn more about raw materials and what makes Russia such a heavy player in this arena. EXPLANATION OF THE KEY TERM Raw materials are “inventory items that are used in the manufacturer’s conversion process to produce components, subassemblies, or finished products” (Satterlee, 2009). These inventory items are “unfinished goods” such as “a steelmaker uses iron ore and other metals in producing steel” (Raw material, 2006). When determining whether to conduct business in a particular region, the availability and relative proximity to raw materials should be a determining factor in the decision making process. While it can be beneficial for emerging businesses when the cost of raw materials is low in a particular region, it can become financially problematic when the vast majority of a nation’s economic system is wrapped up in the production and cost of raw materials. MAJOR ARTICLE SUMMARY This article is a general overview of the Russian economy as of December 2008 that reflects on the causes for a “slowdown” the preceding October. Even though there was a “slowdown” in the economy, growth was still taking place as evidenced in the GDP. For October of that year, GDP growth was 5.9% relative to the 7.7% seen in...
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...To what extent did the policies of Sergei Witte address the problems facing Russia at the end of the nineteenth century? Russia faced many problems at the end of the nineteenth century. Under Minister of Finance Ivan Vyshnegradskii there had been famine because of high taxes on consumer goods which had forced peasants to sell more and more grain. The government were slow to act and, although they eventually enforced a ban on grain exports, 350,000 died of starvation or disease. Economically and industrially Russia was also falling far behind many other Western countries at the time, like Britain and Germany. When Count Witte became Minister of Finance in 1893, there was desperate need to decrease inflation, improve infrastructure and encourage foreign investment. This essay will discuss how successful he was at introducing policies that addressed these problems. A great success for Witte was the expansion of heavy industry in Russia. He linked industrial growth with a stronger nation politically and economically, and was inspired by the more developed nations in the west. He invited foreign experts from more industrialised countries like Britain, France and Germany to Russia to advise him on modernisation. He realised that he would have to have policies that would allow individual business people to start factories and encourage metalwork. His policies were successful, because industrial growth increased on average by 8% a year between 1890 and 1899, which was the highest...
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