Interest rates (adjusted for expected inflation and other risks) serve as market signals of these rates of return. Although returns will differ across industries, the economy also has a natural rate of interest that depends on those factors that help to determine its long-run average rate of growth, such as the nation's saving and investment rates.4 During times when economic activity weakens, monetary policy can push its interest rate target (adjusted for inflation) temporarily below the economy's natural
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_____________________________ Group leader’s name : _____________________________ Group leader’s student ID : _____________________________ Date : _____________________________ Question 5 Malaysia inflation jumps as government feels heat over living costs January 22, 2014 KUALA LUMPUR, Jan 22 — Malaysia’s inflation rate jumped in December, exacerbating a political headache for the government over rising living costs and increasing the chances of an early hike in interest rates this year that could further
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Generations On the meaning of inflation Sep 11th 2013, 16:02 by R.A. | LONDON http://www.economist.com/blogs/freeexchange/2013/09/generations INFLATION, like demand itself, is always and everywhere a monetary phenomenon. Milton Friedman was right about that. But while that's a useful thing to know it's not always the answer to the question we're really asking about macroeconomic troubles. If you ask what America's main macroeconomic problem is at the moment, one correct answer is that it's
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Fundamentals of Macroeconomics The following terms will be define, gross domestic product (GDP), real GDP, unemployment rate, inflation rate, and interest rate. The circular flow diagram will be introduced to describe the representation and interactions with households, government, and businesses. The current economic conditions of the world affects individuals. The most valuable economic indicators will be recognized as affecting the organization along with reasoning of
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of the economy including GDP, inflation, unemployment. I will also discuss the last time the FED increase and decrease the federal funds interest rate and discount rate. I will also discuss how the consequences interest rates affects inflation and unemployment. I will also talk about how the implications to reduce unemployment at the risk of increasing inflation affect which segment of society’s work force. Then I will also discuss the implications to reduce inflation at the expense of increasing
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Suggest a methodology to supplement the traditional methods for evaluating the capital investments of Johnson Controls in the emerging markets to reduce risk providing a rationale of how risk will be reduced. Johnson Controls, Inc. (JCI) was founded in 1885 by Warren Johnson, who was the inventor of the first electric room thermostat. This company was based out of Milwaukee, Wisconsin and is now a global leader in the building and automotive industries. It has more than 1300 locations worldwide
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Question 1 Introduction In economics there are two main schools of thought; these schools differ in their belief of what policies are best suited to attain full employment in the economy. Keynesians tend to favour demand side policies and are more prone to intervene in the market and therefore prefer to use fiscal policy whilst monetarists believe adjustments in money supply is more appropriate in stabilising the market ,therefore preferring monetary policy. In this question I will discuss the
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movements of the CNY/USD A flexible exchange rate is a system, which allows exchange rates to be affected by the supply and demand of its currency. It is unstable due to the low elasticity of import and export, which may cause depreciation in the currency, which leads higher levels of inflation. As China is a country with an undiversified export producing industry, it is unlikely that it would adopt this system as when the exchange rates rises, exporters would find it in their favor as they would be able
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you think Greece should leave (or be kicked out) of the Eurozone? From the Greece point of view, it should stay in the Eurozone. Firstly, if it left the Eurozone and adopt the drachma, the country’s economy would suffer from weak currency, high inflation rate and high interest rate. This situation might continue for several years. The Greeks’ living standard then would become much worse than now. Secondly, Greece cannot benefit a lot from the weak currency. The current dominant industry in Greece
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Executive summary In this empirical report, we have analyze the characteristics of several important economics indicators and how they can be use by economist to look out for period of inflation, sharp changes in GDP growth due to GST and oil shock and how to make use of this indicators to do a projection on the economy performance. We also come to understand how different types of economic indicators are used and how they correspond to the movement economy activities. Understanding the characteristic
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