We obtained data on the inflation rates from 1955-2010 then applied the Taylor Rule which is a formula we learned in class that “predicts” the target fed fund rates as iFed=rFed + π where rFed=2%+ 0.5(π - 2%) (π: inflation rate). Note that extended versions have unemployment rate or GDP growth rate and in our model we do not include this. We then obtained the actual federal funds rate from the website below: http://www.federalreserve.gov/releases/h15/data.htm We then made a graph showing the time
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especially when the EZB (European Central Bank) announced to unlimitedly deal in credits to bail out the Euro. However, the inflation rate was still far away from the 50% p.a. that would cause a hyperinflation. Therefore, it is important to deal with the hyperinflation that was caused due to high national debt and the consequences of the First World War. However, the inflation did not devalue money suddenly, but emerged since the First World War. We have to ask ourselves, whether the German government
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performed and requires additional information to achieve the decision required for the success of the facility. This information required by the organization contains facts concerning the gross domestic product (GDP), unemployment, interest rates, and inflation for both countries. They desire the information to be current within six months, so the organization can make the best decision possible for AutoEdge (CTU, 2014). Utilizing the economic factors of an organization will present the future for the
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judgments. Explain your rationale. Inflation happens when the government increases the amount of money circulating in society while the amount of goods in circulation is less. When occurs, the dollar value goes down and prices generally rise in order to compensate loses (The Money Alert). Inflation may cause individuals to spend less therefore, lowering the economy. Some people may try to borrow money through loans, which is increasingly difficult during inflation periods. Banks do not like to give
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The United States has a Capitalist economy, which means that the economy is owned by private investors rather than the government, and prices and production are determined by supply and demand. Inflation, another key term when discussing money, is, principally, the devaluing of currency. This inflation can happen several ways: first, the currency becomes less rare, making it worth less and less; second, an increase in the price of goods or services without an increase in the value. One example of
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market mechanism that causes inflation or business cycles, the inflation of prices is an effect not a cause of economic disruption ABCT & unsustainable boom–the fed MS to interest and employment (I), not been a change in time preferences, the in interest sends the wrong signal & investment projects start to compete with consumption for resources, may not be noticed (slack resources get used), eventually C & I will have to bid up resource costs, inflation dampens I, so Fed further
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Discuss the extent to which economic growth may benefit an economy. (18) Economic growth is an increase in the output that an economy produces over time, for the minimum of two consecutive quarters. Economic growth can benefit an economy in a number of ways. Firstly, higher average incomes, this allows consumers to enjoy more goods and services and enjoy better standards of living. This in turn could lead to the ‘Trickle Down’ effect, those who are the highest income earners spending their disposable
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ITS EFFECTIVENESS IN CONTAINING INFLATION PROJECT OF MACROECONOMICS ON “RBI’S MONETARY POLICY INITIATIVES SINCE 2008-09 AND ITS EFFECTIVENESS IN CONTAINING INFLATION” SUBMITTED BY ARPIT PANGASA (11DM032) GUNJAN GODWANI (11DM052) RIDHI PRASAD (11DM122) UNDER THE GUIDANCE OF PROF. JAGDISH SHETTIGAR BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY, GREATER NOIDA RBI'S MONETARY POLICY INITIATIVES SINCE 2008-09 AND ITS EFFECTIVENESS IN CONTAINING INFLATION RESERVE BANK OF INDIA It is
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German Unemployment Drops as Euro-Area Inflation Slows Nowadays, unemployment is one of the most important problems we face in economics and society. In recent years the unemployment rate of several countries in Euro increased because there was serious economic crisis. Europe's unemployment rate peaked at 12.2% in 2013. Spain and Greece have high unemployment rate among other. In Spain, the youth unemployment rate was 56% in 2013 and, In Greece, the unemployment rate was 62.5% in 2013. By contrast
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To what extent has China and India effected Japan`s economy between the years of 2009 -2014? Mejia Restoration. In ancient Japan the Tokugwa Period, commonly known as the Edo Period occurred between1603-1863. During this time economic and political stability was maintained in the country under the rule of the Shogunate (1). The Shogunate refers to a military style dictatorship, in which the Emperor granted high ranking military commanders the ability to control and wield power over Japan.
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